Risk Management and Management Accounting Evaluating Via A Six Factor Model on SHB Stock Price – A Case in Commercial Banking Industry in Vietnam

Nguyen Thanh Hung, Dinh Tran Ngoc Huy, Nguyen Thu Thuy and Pham Tuan Anh

Management accounting plays a crucial role in most of banks and organizations. Risk management will go together with management accounting to control cost, lending rate and exchange rate practices better to maximize profit for banks and firms. Fluctuation of stock price in commercial banks in developing countries such as Vietnam will reflect the business health of bank system and the whole economy. Good business management requires us to consider the impacts of multi micro and macro factors on stock price, and it contributes to promoting business plan and economic policies for economic growth and stabilizing macroeconomic factors. By data collection method through statistics, analysis, synthesis, comparison, quantitative analysis to generate qualitative comments and discussion; using econometric method to perform regression equation and evaluate quantitative results, the article analyzed and evaluated the impacts of six (6) macroeconomic factors on stock price of a joint stock commercial bank, Sai Gon Hanoi Bank (SHB) in Vietnam in the period of 2014-2019, both positive and negative sides. The results of quantitative research, in a seven factor model, show that the increase in GDP growth and lending rate and risk free rate has a significant effect on increasing SHB stock price with the highest impact coefficient, the second is decreasing the exchange rate. This research finding and recommended policy also can be used as reference in policy for commercial bank system in many developing countries. Also, accepting slight increase in lending rate and exchange rate might increase SHB stock price.

Volume 12 | 05-Special Issue

Pages: 804-815

DOI: 10.5373/JARDCS/V12SP5/20201819