• Version
• Download 7
• File Size 0.00 KB
• File Count 1
• Create Date 03/11/2020
• Last Updated 04/11/2020

Client entertainment expenses and firm performance: Evidence from small and medium enterprises in Vietnam

By Nguyen Thi Kim Uyen (VNP 23)

Supervisor: Dr. Truong Dang Thuy

Abstract

Appropriate business strategies are considered as the key factors for firm performance, especially for small and medium-sized enterprises (SMEs). In Vietnam, SMEs play an important role in promoting the development of the economy. Therefore, investigating the suitable strategy to boost SME performance has meaningful contributions for the economy. SMEs with the limitations of financial resources and economic power accompanying volatility of Vietnamese financial market, building market strategies to improve SMEs performance tend to be more uncertain. Therefore, non-market strategies by building social capitals in this case are likely feasible strategies for enhancing the performance of SMEs. Although many studies have investigated the impacts of social capital on enterprise performance, there is no research examining the impacts of client entertainment expenses (CEE) on firm performance. Hence, in this research, we investigate the determinants of CEE and the effects of CEE on SME performance in Vietnam using the firm-level data taken from Small and Medium Enterprise (SME) Survey 2015. Besides, we employ Tobit model following with marginal effect and probability of marginal effect to estimate what factors affect CEE; additionally, we used OLS method to evaluate the impacts of CEE on the performance of SMEs. We found that spending on CEE promotes the performance of SMEs in Vietnam. Moreover, the results also highlight the determinants of CEE payment and probability of spending on CEE which are firm size, tax burden, number of contracts with clients, government help and the share of total products sell to other province.

Attached Files