Políticas Públicas en materia de bicicleta en el Estado de Puebla.

Although there are some significant findings, this study contains some limitations that may affect the outcomes. First, the sample is small, which may cause less reliability. Second, the researcher only focuses on one sector of industry of Vietnam (Construction and Building-material sector), hence, the results of findings are only applicable for this sector. Also, lack of literature review in Vietnam context may narrow the outputs of the study.

Based on this study, further research should be conducted to help gain better understanding about the impact of working capital on firms’ profitability. Researchers in the future of the same topic may focus on two or more sectors of the economy and compare the results, or they can use different proxies to measure the variables. For example, researchers can use Gross Operating Profit as a measure of profitability. Moreover, further research can be conducted between small firms and large firms to see if there are any differences between working capital and profitability of small firms and large firms in the context of Vietnam as well as worldwide.

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APPENDIX

RESULTS OF HAUSMAN TESTS FOR CORRELATED RANDOM EFFECT

Hypothesis 1:

Table 9: Result of Hausman test for hypothesis 1

Test Summary

Chi-Sq.

Statistic Chi-Sq. d.f. Prob.

Cross-section random 2.493411 4 0.6458

(Source: Eviews output)

Hypothesis 2:

Table 10: Result of Hausman test for hypothesis 2

Test Summary

Chi-Sq.

Statistic Chi-Sq. d.f. Prob.

Cross-section random 2.084054 4 0.7203

59 Hypothesis 3:

Table 11: Result of Hausman test for hypothesis 3

Test Summary

Chi-Sq.

Statistic Chi-Sq. d.f. Prob.

Cross-section random 2.325570 4 0.6761

(Source: Eviews output)

Hypothesis 4:

Table 12: Result of Hausman test for hypothesis 4

Test Summary

Chi-Sq.

Statistic Chi-Sq. d.f. Prob.

Cross-section random 1.868154 4 0.7600

(Source: Eviews output)

Since p-value of 4 tests are higher than significance level of 0.05 (0.6458, 0.7203, 0.6741, and 0.76 respectively), H0 is accepted (H0: There are not random effects). Therefore, the multiple regression will apply fixed effect in cross-section for four hypotheses.