IMPACTS OF BANKING SYSTEM AND STOCK MARKET ON FIRM PERFORMANCE: EVIDENCE FROM VIETNAM'S REAL ESTATE SECTOR

The paper investigates the impact of the banking system and stock market on the performance of real estate firms in Vietnam. Data are obtained from financial reports of 35 real estate firms and the World Bank database in the 2013-2017 period. By using the Generalized Method of Moment (GMM) in estimating the research model, the author finds first empirical evidence on the influence of the banking system and stock market on firm performance. Specifically, consistent with the earlier studies, the paper reveals that domestic credit to private sector (DCP) exerts a positive impact on firm performance (ROA). Also, it concludes an unprecedented finding that is stock market capitalization (SMC) is negatively correlated to firm performance (ROA). More than that, the results also stress that firm performance is significantly more influenced by developments in the banking system than those in the stock market. Based on these findings, the authorities in Vietnam can develop its banking system, stock market and real estate firms sustainably. (C) 2020 INT TRANS J ENG MANAG SCI TECH.