The Impact of Inventory Scale, Installment and Financing Policies on Sales Growth of Vietnamese Real Estate Companies

Abstract

Instead of the normal approach, this paper addressed sales growth by an economic growth model. The research applied the S-GMM in dynamic panel data of Vietnamese real estate companies during the period of (2011-2018). This paper showed that inventory scale, installment payment and financing policies are the major positive factors affecting sales growth. Real estate’s characteristic is their increasing price trend over time, suggesting companies with larger inventory scale potentially earn higher revenue. The installment policies is also another trait of the field, implying that companies with strong enough capital to support installment policies can further increase sales. Therefore, a capital structure with high financial leverage is consequently a management’s choice to respond to the needs of sales growth.