Factors Affecting the Capital Adequacy Ratio (Car) of the Commercial Banks Listed on the Vietnam Stock Market

Abstract

The objective of the paper was to determine the impact of factors affecting the capital adequacy ratio of commercial banks listed on the Vietnam Stock Market. This research using Panel regression techniques to analyze the factors affecting the capital adequacy ratio (CAR) of 10 commercial banks listed on the Vietnam Stock Market during the period 2008 - 2016. Data serveyed from 10 commercial banks during 2008 - 2016. Research results showed that the factors including: DEP, ROA, ROE, and SIZE affecting the capital adequacy ratio (CAR) with significance level 5 percent. However, this study had not found quantifiable evidence from the liquidity (LIQ) and loans on asset ratio (LOA) affecting the capital adequacy ratio of listed commercial banks of Vietnam Stock Market.