Does Debt Affect Profitability of Construction Companies in Vietnam? A Bayesian Approach

This study aims to find out the effects of debt on profitability of construction companies listed on the Stock Exchange in Vietnam in the period from 2010 to 2020. Using secondary data from 72 enterprises listing construction, including 792 observations with Bayesian regression technique to find out the factors affecting the overall debt ratio of enterprises. Regression results show that there are 6 important factors affecting the profitability ratio, namely short-term debt to total assets (SDA), long-term debt to total assets (LDA), liquidity (LQ), annual revenue growth (GROWTH), firm size (SIZE), inflation rate (INF). From there, business managers can refer to the research results to make decisions in the course of business operations, ensuring compliance with the development goals of enterprises in the construction industry.