The Impact of Micro and Macroeconomic Factors on Corporate Performance: Evidence from Non-Financial Listed Companies on the Ho Chi Minh Stock Exchange

Abstract

Corporate performance is a paramount indicator of the success of businesses in Vietnam's fast-changing economy. This study examines the interaction between microeconomic and macroeconomic variables and their influence on the financial performance of Ho Chi Minh Stock Exchange listed non-financial companies during 2019-2023. With an extensive sample of 1,735 firm-year observations, we offer a bird's-eye view of how internal variables like revenue growth, asset turnover, leverage, and board characteristics interact with such external variables as GDP growth, inflation, and geopolitical tensions to influence firm outcomes. Underpinned by a quantitative research design, the research applies advanced econometric models to ensure the validity of our findings. The main results reveal that although revenue growth and asset turnover have positive influences on profitability, high leverage and geopolitical risk negatively influence performance. Additionally, board attributes, in particular, independence and gender diversity, exert complex influences on corporate governance and effectiveness of decision-making. Our results are an input to theoretical literature through closing gaps in existing studies and combining various variables within an integrated framework. In practice, they provide managers, policymakers, and investors with real-world guidelines in handling the uncertainty of a chaotic economic environment. Through stressing strategic flexibility and good governance, our research shows how the internal and external drivers need to be aligned in order to enhance corporate resilience and long-term value creation. In conclusion, the research improves understanding of firm performance determinants and further offers a framework for stakeholders who want to improve financial strategies in the face of macroeconomic hardship. Subsequent research could advance upon these findings by examining trends within individual industries or incorporating real-time macroeconomic volatility to further advance discussion