Measurement of Successful Management and Leadership Via A Multi Factor Model on Bank Profit - A Case of BIDV

Abstract

Purpose of study: we build a Multifactor model impact on bank net profit.Bank for Investment and Development of Vietnam (BIDV) who became Best retail bank in Vietnam in recent years, has made very positive contributions to the overall achievements of the banking industry, deserving of its position as one of the leading joint stock commercial banks of the Vietnamese banking system, contributing to helping State Bank stabilizes the market and successfully implements monetary policy. Movement of net profit 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 multi macroeconomic factors such as: stock price, VNIndex, risk free rate, lending rate, inflation, GPD growth, S&P500, exchange rate, etc. on net profit of a joint stock commercial bank, BIDV Bank (BID) in Vietnam in the period of 2010-2023, both positive and negative sides. The results of quantitative research, in a seven factor model, show that the increase in inflation, GDP (increasing too much) and lending rate and reducing risk free rate has a significant effect on reducing MBB 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.