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Investigating The Relationship Between Financial Factors And P/E Ratio Of Listed Steel Companies On Vietnam Stock Exchange

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  • Quan Nguyen Van,
  • My Bui Do Huyen,
  • Binh Bui Doan Gia
Quan Nguyen Van
1Faculty of Business Administration, Academy of Policy and Development, Ministry of Planning and Investment Hoai Duc District, Hanoi,
My Bui Do Huyen
Nguyen Sieu High School Yen Hoa Ward, Cau Giay District, Hanoi,
Binh Bui Doan Gia
Amsterdam High School for the Gifted, Trung Hoa Ward, Cau Giay District, Hanoi,
Published in : International Journal of Scientific Research and Management (IJSRM) , Vol. 12 No. 06 (2024)

Submission to VIJ 2024-06-21

Keywords

  • Dividend payout ratio,
  • financial factors ,
  • listed steel companies,
  • price to earnings ratio

Copyright (c) 2024 Quan Nguyen Van, My Bui Do Huyen, Binh Bui Doan Gia

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The importance of the steel industry and its continuous development for steel companies in developing countries may lead to potential investment opportunities for investors in the stock markets. With the direct impact of financial indicators, this study was conducted with the main purpose to investigate the relationship between financial factors and price-to-earnings (P/E) ratio of listed steel companies on Vietnam Stock Exchange. The research was conducted with quantitative method through collecting secondary data with 13 listed businesses in the period of 2013-2022. The findings indicated that dividend payout ratio, earnings growth and stock price respectively have a decreasing positive impact on P/E ratio. In contrast, earnings per share shows a non statistical relationship with P/E. This will be an important basis for proposing management and policy implications for policy makers, businesses and investors to promote favorable a stock investing environment through a wise assessment of P/E ratio.

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