DETERMINANTS OF EFFICIENCY OF LISTED REAL ESTATE FIRMS IN VIETNAM

Abstract

This paper estimates efficiency and examine factors that influence the efficiency of listed Vietnamese real estate firms for the period of  2010-2019. In the first stage, we estimate the efficiency level of listed real estate firms by employing the data envelopment analysis (DEA) approach. In the second stage, the Tobit Model and Bayesian Model Averaging (BMA) were estimated to determine factors that influence efficiency of obtained in the first stage. The results indicate that the average scale efficiency is 93,01%,  with CRSTE at 80,50% and VRSTE at 86,61%, showing that the Vietnamese real estate firms have not used the maximum input resources. The Tobit and BMA regression result show that size, total assets turnover, profitability, foreign ownership, real estate price, land access, economic growth, banking sector fragility and Government efficiency share positively affects the efficiency of Vietnamese real estate firms while systematic risk, capital structure, interest rates and inflation negatively affect the efficiency as predicted.