On the basis of clarifying the general theoretical issues about market risk, methods of identifying, measuring and controlling market risk, the system of market risk management softwares at commercial banks; analyzing and evaluating the status quo of the market risk management in Vietnam Joint Stock Commercial Bank for Industry and Trade; the thesis proposed solutions to improving market risk management ability at Vietnam Joint Stock Commercial Bank for Industry and Trade in accordance with international practices.
Trang 1DEPARTMENT OF EDUCATION AND TRAINING
THE UNIVERSITY OF DANANG
BUI NU THANH HA
FINANCIAL STRUCTURE OF TEXTILE GARMENT ENTERPRISES
IN THE CENTRAL REGION IN THE INTEGRATION PROCESS
SPECIALIZE : INDUSTRIAL ECONOMY
CODE: 62.31.09.01
PHD THESIS SUMMARY
DaNang , 2014
Trang 2WORKS TO BE DONE IN
The University of Economics The University of DaNang
The scientific guidance:
Dr Doan Gia Dung
ASS Prof., Dr Nguyen Truong Son
Reviewer1: ASS Prof., Dr Nguyen Cong Phuong
Reviewer2: ASS Prof., Dr Thai Thanh Ha
Reviewer3: ASS Prof., Dr Phan Thi Minh Ly
The thesis will be protected against the council state thesis
meeting at the University of DaNang
At ……….day month year
Thesis can be found at:
+ The National Library
+ The Information Resource Center , UDN
+ The Library of Economics University , UDN
CATALOGUE OF WORKS PUBLISHED AUTHOR
1 "Vietnam before shifting trends textile sector - Tendency
of Vietnam in the Garment Sector Shifting"
The article in the Journal of Science and Technology - UD
04 (65) - 2013
2 “A research on the capital structure of Textile enterprises
in central region in the current period”
The article in the Journal of Science and Technology - UD
11 (71) - 2013
3 "The balance of the cost to make strategic business planning - Role of Balance of the contribution margin in making business strategy " The article in the Journal of Finance, 10 (408) - 1998
Trang 3CONCLUSION –š&›—
1 Results achieved
- Gather the theory of financial structure of the business
- To study the factors affecting impact the financial structure of
the enterprise Central textiles
- Develop a relationship between the HSNO factors affecting the
financial structure of the enterprise Central textiles
- Propose the policy implications for central textile industry in
the design and construction of financial structure
2 Limitations
- The study sample data on financial statements from 2007-2012
should limit accurate results in certain degree
- Thread of price on the market yet
- Due to the data collection should be limited to research topics
have not the financial structure of the business has had to scale
according to the production stage of the textile industry in Central
3 User research and development after the completion of the
subject
Will study the financial structure of the textile enterprises in
terms of scale central coordinating with each stage of the production
process of textile industry business
PREAMBLE
1 The Urgency of thesis
Since 01/01/2007, Vietnam officially joined the WTO and Vietnam's garment industry is one of the import and export sector is dominated by very large this integration process Therefore, the State has taken the textile undertakings become one of the key economic sectors in the country
In the Central Highlands, in order to put the textile industry became a key economic sectors of the region, researchers and the authorities have not stopped a comprehensive study of all aspects of the operation of textile enterprises in Central
Through research, has seen the textile enterprises typically have
to borrow money to invest and expand equipment manufacturing business Given the increase in debt and interest rates will cause the central textile enterprises profits shrinking and limited access orders package that Vietnam's garment industry is looking forward to signing with water outside
So building a financial structure with the rate payable on a reasonable equity has become essential issue for the central enterprises in textile current period
Structured finance sectors have generally been much study authors nge in the industry, various sectors but so far the financial structure of the textile industry in Central still left unresolved
This is the fundamental reason for the author to choose the topic
" Financial structure of the textile garment enterprises in the central region in the integration process "
Trang 42 Objectives of the study
Through the application of the theory of financial structure has been
the subject precedes the study, the authors collected information
systems financial situation of the textile enterprises to perform central
solve the following:
- Formalized theoretical and practical financial and structural factors
affecting corporate financial structure
- Assess the financial structure of the enterprise Central textiles
- Identify the factors that affect the financial structure of the textile
enterprises in Central
- To study the relationship between the factors that influence the
financial structure of the textile enterprises in Central
- Propose the policy implications for central textile enterprises to
finance construction of logical structures
3 Subjects and scope of research
Audience research: This research focuses on the study of the
financial structure of the textile enterprises in Central and factors
affecting the financial structure of the business
Scope of the Study: The study is an enterprise businesses operating in
the Central province by the end of 2012 This is the time now
operating continuously from 2007 to the present through which the
author conditional recognition tends financial structure of the textile
enterprises in Central
4 Research Methodology
To accomplish the research objectives, methods to reuse system to
system as well as the theory of empirical research ahead to determine
the theoretical framework and the financial structure factor affect the
financial structure Then, subjects using the method of sample
5.2.1 For fiber production enterprises
But this industry has many problems, but pre-tax profit margin / net sales to be better than the Textile segment (6.8%) While investment
in fiber industry, we can apply equation (4) to develop the capital structure and properties suitable for businesses
5.2.2 For textile enterprises
The enterprises in the textile and dyeing can apply equation (5) to rebuild capital structure for enterprises towards more reasonable According to this model, the textile enterprises should balance between equipment investment by capital owners to invest in loans
5.2.3 For enterprises in the apparel segment
The garment enterprises can apply equation (6) to develop the capital structure According to this model, the garment industry is very big pressure on raw materials and less investment in fixed assets
5.2.4 For businesses textile - garment
Capital structure of the textile business - unfortunately can apply equation (7) Overall textile enterprises - may have the ability to raise capital by borrowing more favorable than collateral and unsecured ability is also very high because of the reputation of the business can widely in the country and abroad
Enhancing technological innovation towards modernization and industrialization
5.3 The policy implications from the study of the financial structure of the textile industry in Central
5.3.1 Guide for businesses to invest according to stages of the textile industry in Central
5.3.2 Other policy implications for the textile industry in Central
5.3.2.1 Creating conditions for textile enterprises in the central area
of small and medium scale development 5.3.2.2 Strengthening macro-management to promote innovation and technological equipment for textile enterprises in Central
Conclusion Chapter 5
Trang 5and balance with the available resources for long-term assets, owners
of capital in the direction of reducing the proportion of equity to
increase ROE up and down as well as to increase the D/E
To do this requires the active support of the policy of the local
government level for the central textile business
5.1.3 For the Large Enterprise
According to equation (3), the textile business operations on a
large scale central province needs to increase investment in long-term
assets because the density factor for long-term assets / total assets is a
factor enjoy the same direction to pay the debt / equity
And the way to increase long-term accelerated dissipation of
large textile enterprises is enhanced forms of corporate restructuring
such as mergers, joint ventures and associates
This is another step to help structural shift central textile industry
can make the production process from the stage of a closed business
Yarn - Textile - Apparel
5.2 User design the financial structure of the textile industry
under the central processing stages of textile industry
Table 4.5-The performances of the debt relationship with the factors
affecting the paragraphs under
Business Model the correlation between the debt ratio to the factors affecting
the paragraphs under
1 Yarn
manufacturing
enterprises
Ln Y = - 3,979 + 0,353 LnX1 + 0,553 LnX2 – 1,349 LnX3 + 1,393 LnX4 – 0,07 LnX5 (4)
2 Textile
enterprises Ln Y = - 1,942 - 0,049 LnX1 – 0,450 LnX2 – 1,636 LnX3 + 1,806 LnX4 – 0,355 LnX5 (5)
3 Garment
enterprises Ln Y = - 3,671 + 0,301 LnX1 + 0,101LnX2 – 1,352 LnX3 + 1,803 LnX4 – 0,514 LnX5 (6)
4
Textile-Garment
Enterprises
Ln Y = 1,134 - 0,041 LnX1 + 1,217 LnX2 – 0,524 LnX3 + 1,416 LnX4 – 0,801 LnX5 (7)
surveys to identify factors affecting the financial structure The process is divided into 2 stages:
Stage 1: in-depth interviews with the director, chief accountant or chief financial officer of typical textile enterprises to suggest factors influence
Stage 2: Collect financial data of 202 Chinese textile enterprises included in the research domain; with data sources from 31/12/2007
to 31/12/2012 by GSO offers
All the collected data is processed by the thesis appropriate statistical techniques to detect the characteristics of the financial structure and the influential factors
5 The Contributions topic
- The theme describes the status of the financial structure of the textile industry in Central and the impact of each factor affects the actual financial structure of the enterprise
- Analyze characteristics Vietnam textile technology in relation to the trend of integration and its impact on the financial structure of the enterprise Central textiles
- To establish the model factors affecting the financial structure of the textile industry under the criteria central enterprise scale and production stage criteria textile industry
- Propose the policy implications for the direction and support for the central textile enterprises choosing an appropriate financial structure with the scale and according to the business segment of the textile
industry
6 Structural thesis content
Besides the introduction and conclusion, the main content of the thesis is structured into 5 chapters:
Trang 6Chapter 1: Rationale for structured finance business
Chapter 2: Study Design
Chapter 3: Typical financial structure of the textile enterprises in
Central
Chapter 4: Factors affecting the financial structure of the textile
enterprises in Central
Chapter 5: Policy Implications of the financial structure of the
textile industry in Central
7 Observe synthesis of research literature
To implement the project, the authors looked at 40 studies and
foreign material in the theory of financial structure, the influencing
factors and the empirical study goes ahead Maybe overview of some
typical materials follows:
+ To build the foundation for the empirical study of the subject,
the thesis research and reference Financial Management Lecture of
Dr Doan Gia Dung; Financial Management of Dr Nguyen Thanh
Liem (2002); Analyze business operations of Dr Ngo Ha Tan, Dr
Tran Dinh Khoi Nguyen, Dr Hoang Tung (2009); Syllabus business
analysis - Part II of Prof Dr Cheung and Dr Tran Dinh Thanh Khoi
Nguyen (2001); Econometrics Lecture by Dr Truong Ba Thanh
(2000); Financial Analysis of Dr Truong Ba Thanh (2012)
+ The problem, studied reference and research abroad Typically,
most of these studies are:
- Dr Tran Dinh Khoi Nguyen (2006 ) have studied the small and
medium enterprises from 1999 to 2001 Results of the study indicated
that the financial structure of small and medium enterprises in
Vietnam relations in the same direction with the factors: ability to
grow and scale the business and bank interest
4.3.2 The model results with the HSNO correlation between factors affecting the textile division of the central business of scale ( see Appendix )
Conclusion Chapter 4 :
Financial structure of the textile enterprises in Central positively There ROE and ROA opposite relationship and economic characteristics of the technical textile industry
Chapter 5
THE POLICY IMPLICATIONS OF FINANCIAL STRUCTURE FOR TEXTILE INDUSTRY CENTRAL 5.1 User design the financial structure of the textile industry on the scale Central
Table 5.1 Model correlation between the debt ratio to the
influencing factors according to firm size
Business Model the correlation between the debt ratio to the influencing
factors according to firm size
1 Small sized enterprises LnY = - 4,204 + 0,384 LnX1+ 0,129 LnX2 – 1,478 LnX3 + 1,985 LnX4 –0,571 LnX5 (1)
2 Medium-sized enterprises LnY = - 0,475 - 0,004 LnX1 – 0,049 LnX2 – 1,072 LnX3 + 1,279 LnX4 – 0,213 LnX5 (2)
3 Large sized enterprises LnY = - 2,275 + 0,178 LnX1 + 0,433 LnX2 – 1,157 LnX3 + 1,385 LnX4 – 0,240 LnX5 (3)
5.1.1 For small businesses
So managers should now use equation (1) to calculate the balance of the loan demand, by increasing equity and increase investment in the long-term asset
Structure that can bring pre-tax profit margin on net sales of around 5.2%, this rate is quite satisfactory for the textile enterprises are small Central
5.1.2 For medium-sized enterprises
Through data calculations can see the textile business central medium scale can apply equation (2) to develop appropriate capital structure
Trang 74.2.2 Encryption turns the primary factors affecting
4.2.3 Research assumptions and empirical dimension of the factors
affecting the initial
Table 4.2 Coding financial structure variables and the factors
influencing
Factors affecting Variable coding
How to measure Variable
coding Scale Enterprises Equity LnX1
Asset Structure Long-term assets
/ total assets LnX2
Operating Efficiency ROA ratio
ROE ratio LnX3 ;LnX4
Technical and economic characteristics Profit / Revenue LnX5
Corporate financial structure Liabilities /
Equity LnY
4.3 Financial Results structured textile enterprises in Central
applying SPSS software ( see Appendix 16 ÷ 22 )
4.3.1 Analysis of the model results
4.3.1.1 Analysis of partial correlation coefficient r and single linear
regression between HSNO and the factors influencing
4.3.1.2 Analysis of multiple linear regression coefficients between
HSNO and the factors influencing
With data from 01.01.2012 to 31.12.200, the results obtained from
the SPSS software have close relationships with each other and
significance between the dependent variable and the independent
variables In all of the research data set, R2 coefficients are achieved
from : 0.789 ÷ 0.991 and Sig < 0.000 a This shows that the linear
regression model fit multiple data sets and can be used in this study
and draw conclusions for the study
- Dr Doan Ngoc Anh Phi (2010 ) studied the factors affecting the financial structure and financial performance of the business The study has shown the financial structure positively correlated with the size of the business and negatively correlated with effective business factors, business risks and asset structure
- Author Truong Dong Loc and Vo Thi Kieu Trang (2008) conducted a study of factors that affect the capital structure of listed company shares on the stock market in Vietnam
- The author Antoniou, Antonios,Yilmaz Guney, Krishan Paudyal (2002) studied the factors affecting the financial structure of the Group of the European block The authors pointed out the financial structure is correlated positively with the scale factor of the business and negatively correlated with interest rate factors and stock prices in the market
- Bevan , Alan A , Jo Danbolt (2000 ) used a regression approach
to analysis of capital structure than 800 companies in the UK Through research, the authors concluded that the financial structure
of the business are negatively related to profitability and growth opportunities
- Huang, G.H.Samuel, Frank Song.M (2002)c ollected and studied accounting data and market data of more than 1,000 Chinese companies listed on the stock market, the debt ratio showed total assets of the company be positively related to the size of the company, the tax shield, the proportion of fixed assets to total assets but have negatively related to profitability and industry characteristics
Trang 8- Yu Wen, Kami Rwegasira and Jan Bilderbeek (2002) studied the
relationship between the financial structure of the company in China
Results of the study showed that the company directors often choose
lower debt ratios when they face the strict management policy of the
Board of Directors The following is a summary of the research:
Table 1 - Summary of Domestic Research on the influence of these
factors to the financial structure of the business
The influence of these factors on the financial structure of the
business sector The factors that
have affected
domestic
researchers
mention
Manufacturing and processing seafood exports
Seafood processing industry
in Khanh Hoa
The textile industry
in Da Nang
Manufacturing business Danang Seafood
Common
to all branches
1 Scale
2 Asset
3 Growth
6 Risk in
7 Industry
8 Interest
9 Business
10 Form of
11 The other
3.3.2 Analysis of the structure and growth trend of the textile industry in Central from 2007 to the present stage
Trend of the basic scale textile enterprises is increasingly central focus more on the enterprise scale and large capital
* Is scaling up the material to increase the autonomy of operations or ODM export FOB, EDM
* The provinces tend to innovate, improve technology to advance the implementation of all stages of the textile value chain from fiber - fabric production - apparel
* The number of textile enterprises is increasing Activities of each business are focused on enhancing both quality and quantity
Conclusion Chapter 3
Chapter 4
FACTORS AFFECTING THE FINANCIAL STRUCTURE
OF TEXTILE ENTERPRISES IN CENTRAL REGION 4.1 Factors affecting the financial structure of the textile enterprises in Central
4.2 Overall study of factors affecting the financial structure of the textile enterprises in Central
4.2.1 Implementation Process
Step 1 : Selection of factors affecting the financial structure of textile enterprises in Central
Step 2 : Handling data from the primary data set initially Step 3 : Coding variables
Step 4 : Check the data before entering into SPSS software Step 5 : Run the software
Step 6 : Correlation analysis between variables Step 7 : Testing and conclusions about the relationship between the ratio of liabilities to the factors influencing studied
Trang 9Table 3.3 The number of textile enterprises throughout Central by
ratio Liabilities / Equity to 01/01/NN
Liabilities / Equity (D/E)
Year
68 233
18 85 234
27 132 245
44 126 349
51 127
D/E <1 1<= D/E <1,5 D/E >=1,5 0
50
100
150
200
250
300
350
N¨m 2008 N¨m 2009 N¨m 2010 N¨m 2011 N¨m 2012
161
26
Figure 3.3 The structure of textile enterprises throughout Central
division by a factor of D/E
Table 2 - Summary of study abroad on the influence of these factors
to the financial structure of the business
The influence of these factors on the financial structure
drawn from the study abroad The influencing factors
were studied abroad Huang
and Song
Mashar and Nars
Brian Gibson
Rajan and Zingales
Frank and Vidhan
3 Growth
7 Industry
10 Form of
11 Longevity of
Legend: (+): Positive correlation dimension; (-): inverse correlation dimension k: no correlation, x: not only qualitative research quantitative research
These documents helped author on the study design and propose recommendations proposed by topic
Trang 10Chapter 1 PLATFORM RESEARCH ON STRUCTURE OF CORPORATE FINANCE
1.1 Financial structure of the business
1.1.1 The concept of business
1.1.2 The concept of the financial structure of the business
"Financial structure refers structure between debt and equity of
the enterprise The capital structure indicates the structure of
long-term capital (common stock, preferred stock, long-long-term bonds and
medium-term loans and long-term debt)"
1.1.3 The indicators measure the financial structure of the
business
Table 1.2: Summary of measuring financial structure
measurement
The significance criteria
1 Coefficient of
liabilities - assets
Liabilities / Total Assets
Responsibility for the enterprise's assets are funded by liabilities
2 Coefficient Current
liabilities - assets
Short-term Debt / Total Assets
Responsibility for the enterprise's assets are funded by liabilities
3.Coefficient Liabilities
- Equity
Liabilities / Equity Source
Reflecting the balance between self-financing and reliance on credit providers
4 Coefficient of
long-term debt -capital often
Long-term Debt / Equity regular
Reflecting the reasonableness of the use of debt
in investment assets of the business
1.1.4 The relationship between financial structure now
Enterprise value at a time is expressed through the following
formula : Value = Total corporate assets - total liabilities
Conclusion Chapter 2
Chapter 3 FEATURED FINANCIAL STRUCTURE TEXTILE ENTERPRISES CENTRAL 3.1 Overview of the Vietnam Textile and Garment activities
3.1.1 Historical development of Vietnam's garment industry 3.1.2 Achievement Vietnam textile and garment industry in the process of WTO accession
3.1.3 Trend of the competitive world market and challenges for Vietnam's garment industry
3.2 Difficulties in the export of textiles Vietnam 3.3 Overview of the business and production activities in Central Textile industry from 2007 to present
3.3.1 An overview of the scope and structure of the textile industry
in South China after WTO accession to this
When gathering and initial processing of the data structure textile enterprises under central factor Liabilities / Equity (abbreviated as D/E), the thesis was based on the common, customary industry textile design 3 to limit coefficient NPT / equity are:
Group 2 1≤ HSNO < 1,5 Equity ≤ Liabilities < 1,5 Equity
The situation may see Table 3.3 and Figure 3.3: