COMPETITIVENESS AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS

Abstract

Economic globalization is the most important aspect of globalization. The rapid globalization of the world economy brings Vietnam many opportunities and challenges. One of those challenges is the increasingly fierce level of competition in the market. Commercial banks need to improve their competitiveness to survive and develop. To create sustainable competitive advantages, commercial banks need to discover, nurture, and develop their resources. The main purpose of this study is to empirically examine the influence of competitiveness on the financial performance of commercial banks listed on the Hochiminh stock market (HSX). The authors collected secondary data from previous studies on commercial banks listed on the Hochiminh stock market in the period 2019–2023. For this purpose, in this study, we use the market share (MS) variable to measure the competitiveness of commercial banks; ROA measures the financial performance. We have performed a number of analyses, such as descriptive statistics, correlation matrix, OLS regression, FEM and REM, and GLS regression, with the support of Stata software, to evaluate and measure the influence of competitiveness on the financial performance of commercial banks listed on the Hochiminh stock market (HSX). The results show a positive influence of competitiveness on the financial performance of commercial banks listed on HSX. The competitiveness and financial performance of commercial banks listed on the HSX are statistically and economically significant.