Determinants influencing intention to apply multi-dimensional profitability analysis at commercial banks’ strategy

Download This Article

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

Abstract

Multi-dimensional profit analysis (MPA) in management accounting allows banks to analyze their profit from different perspectives, the results of which provide useful information for banks to make decisions (KPMG, 2019). A comprehensive and multi-dimensional view of profits based on products, distribution channels, customers, geography, and bank staff through effective cost allocation models is increasingly important in the world. However, the intention to apply MPA applications depends on various factors, which have not been discussed well in the Vietnamese banking context. The aims of this study include finding out the factors that influence the intention to apply MPA in Vietnamese commercial banks and proposing recommendations to encourage Vietnamese commercial banks to implement. This study combines both qualitative and quantitative research methods, based on interviews of 300 managers of commercial banks to investigate the statistical significance of the determinants affecting intention to apply MPA. The results reveal some most influencing factors, ranging from the human factor to the perception of the leadership of the bank, as well as the guiding factor of the regulator. From the findings, several suggestions are proposed for the intention to apply MPA in the context of Vietnamese commercial banks.

Keywords: Multi-Dimensional Profit Analysis, Commercial Banking, Finance, Management Accounting

Authors’ individual contribution: Conceptualization — M.P.N.; Methodology — A.P.; Writing — Original Draft — M.P.N.; Writing — Review & Editing — M.P.N. and T.T.H.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G41, L20, M41

Received: 15.01.2024
Accepted: 08.07.2024
Published online: 10.07.2024

How to cite this paper: Nguyen, M. P., Hoang, T. T. H., & Phan, A. (2024). Determinants influencing intention to apply multi-dimensional profitability analysis at commercial banks’ strategy. Corporate & Business Strategy Review, 5(3), 137–147. https://doi.org/10.22495/cbsrv5i3art13