Determinants of capital structure ,of the food and beverage enterprises, listed on Vietnam''s stock market 2022
i THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY HO CHI MINH CITY LE NHAT MINH ANH DETERMINANTS OF CAPITAL STRUCTURE OF THE FOOD AND BEVERAGE ENTERPRISES LISTED ON VIETNAM’S STOCK MARKET GRADUATION THESIS MAJOR: FINANCE AND BANKING Ho Chi Minh,2022 ii THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY HO CHI MINH CITY LE NHAT MINH ANH DETERMINANTS OF CAPITAL STRUCTURE OF THE FOOD AND BEVERAGE ENTERPRISES LISTED ON VIETNAM’S STOCK MARKET GRADUATION THESIS MAJOR: FINANCE AND BANKING SUPERVISOR NGUYEN THI NHU QUYNH, PHD Ho Chi Minh,2022 i COMMITMENT The author commits an honorary statement about your scientific thesis, specifically as follows: Full name of the author: Lê Nhật Minh Anh Born on October 2nd, 1998 in DaNang, Viet Nam Hometown: DaNang, Viet Nam Currently, last year student majoring in Finance and Banking, at Banking University Ho Chi Minh City While studying at Banking University Ho Chi Minh, the author declares that The thesis: Determinants of the capital structure of the Food and Beverage listed on Vietnam‘s stock market Major in: Finance - Banking Science supervisor: Nguyễn Thị Như Quỳnh, PhD This thesis has never been submitted anywhere else before The thesis is the author's own research work The research results are reliable, in that there are no previously published contents or contents made by others except for cited sources fully in the thesis Ho Chi Minh City, 11 April 2022 The Author Lê Nhật Minh Anh ii ACKNOWLEDGMENT First of all, the author would like to thank the Banking University of Ho Chi Minh City and the teachers who enthusiastically helped with knowledge, taught and imparted valuable knowledge as well as necessary documents for the author's work qualified to complete this thesis In particular, I would like to express my deep gratitude to my supervisor, Ms.Nguyen Thi Nhu Quynh, PhD for her attention, guidance and meticulous guidance so that I could complete my thesis in the best way Finally, I would like to thank my family, brothers and sisters, and friends who wholeheartedly cared and created the best conditions for the author to complete this graduation thesis However, due to the limited expertise and knowledge of the research area, this thesis still contains many errors The author is looking forward to receiving the comments of the teachers so that I can complete the thesis better The Author Lê Nhật Minh Anh iii ABSTRACT The purpose of this thesis is to investigate determinants that affect the capital structure of the food and beverage (F&B) companies listed on the Vietnam Stock Exchange Thereby offering some recommendations to support F&B firms improve their capital structure suitable for their business activities Data was collected from the audited financial report of 34 the F&B enterprises listed on Vietnam‘s stock collected from the published annual financial market from 2009 to 2020 and were analyzed by using Stata.14 software Thesis using Feasible Generalized Least Squares (FGLS) regression models to ensure the effectiveness of the chosen models The dependent variable is financial leverage The thesis uses eight independent variables are firm size, profitability, tangibility, growth opportunity, tax, non-debt tax shield, liquidity, and uniqueness of products The research results show that firm size has a positive effect on the financial leverage; while profitability, tangibility, non-debt tax shield, liquidity, and uniqueness of products have a negative effect on the financial leverage The two remaining factors such as growth opportunity and tax affect financial leverage but the coefficient of regression is not statistically significant in the study model iv TÓM TẮT KHĨA LUẬN Mục đích khóa luận nghiên cứu yếu tố ảnh hưởng đến cấu trúc vốn doanh nghiệp ngành F&B niêm yết Sở giao dịch chứng khốn Việt Nam Qua đưa số khuyến nghị nhằm hỗ trợ doanh nghiệp F&B cải thiện cấu vốn phù hợp với hoạt động kinh doanh mình.Nghiên cứu sử dụng liệu báo cáo tài kiểm tốn 34 doanh nghiệp F & B niêm yết thị trường chứng khoán Việt Nam giai đoạn từ năm 2009 đến năm 2020 phân tích phần mềm Stata.14 Bài khóa luận sử dụng mơ hình hồi quy Feasible Generalized Least Squares (FGLS) để đảm bảo tính hiệu mơ hình chọn Biến phụ thuộc địn bẩy tài Tám biến độc lập quy mơ doanh nghiệp, khả sinh lời, tính hữu hình, hội tăng trưởng, thuế, chắn thuế khơng nợ, tính khoản tính độc đáo sản phẩm Kết nghiên cứu cho thấy quy mơ doanh nghiệp có ảnh hưởng tích cực đến địn bẩy tài chính; khả sinh lời, tính hữu hình, chắn thuế khơng nợ, tính khoản tính độc đáo sản phẩm có ảnh hưởng tiêu cực đến địn bẩy tài Hai yếu tố cịn lại hội tăng trưởng thuế khơng ảnh hưởng đến địn bẩy tài chúng khơng có ý nghĩa thống kê mơ hình nghiên cứu v CONTENT ACKNOWLEDGMENT ii ABSTRACT iii TÓM TẮT KHÓA LUẬN iv LIST OF ABBREVIATIONS LIST OF TABLE CHAPTER INTRODUCTION 1.1 REASONS FOR CHOOSING THE TOPIC 1.2 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS 1.2.1 General objective of research : 1.2.2 Specific research objectives: 1.2.3 Research question: 1.3 OBJECTS AND SCOPE OF RESEARCH 1.3.1 Research subject: 1.3.2 Research scope: 1.4 METHODOLOGY 1.5 MEANING OF THE THESIS 1.5.1 Theoretical meaning 1.5.2 Practical meaning 1.6 STRUCTURE OF THE TOPIC CHAPTER THEORETICAL BACKGROUND AND LITERATURE REVIEW 2.1 OVERVIEW OF CAPITAL STRUCTURE 2.1.1 Definition of capital structure 2.1.2 Meaning of capital structure in business 2.1.3 Measure capital structure of the enterprise 10 vi 2.2 THEORETICAL BACKGROUND OF CAPITAL STRUCTURE 11 2.2.1 Modigliani & Miller's Theory (M&M theory) 11 2.2.2 The trade-off theory 13 2.2.3 Pecking order theory 14 2.2.4 Market time theory 15 2.2.5 Agency costs theory 17 2.3 DETERMINANTS OF A ENTERPERISE‘S CAPITAL STRUCTURE 18 2.4 OVERVIEW OF PREVIOUS EMPIRICAL STUDIES 21 2.4.1 Foreign researches 21 2.4.2 Domestic researches 23 Summary of chapter 31 CHAPTER METHODOLOGY 32 3.1 RESEARCH PROCESS 32 3.2 RESEARCH MODEL 33 3.3 RESEARCH HYPOTHESES 36 3.4 RESEARCH METHODOLOGY 40 3.5 DATA 43 Summary of chapter 44 CHAPTER 4: RESEARCH RESULT ANALYSIS 45 4.1 DESCRIPTIVE STATISTICS OF VARIABLES 45 4.1.2 Correlation analysis of variables 46 4.2 REGRESSION MODEL RESULTS 47 4.2.1 The model chosen 47 4.2.2 Test results 48 4.3 RESEARCH RESULTS DISCUSION 52 Summary of chapter 55 vii CHAPTER CONCLUSIONS AND RECOMMENDATIONS 56 5.1 CONCLUSION 56 5.2 RECOMMENDATIONS 57 5.3 THESIS LIMITATIONS AND RESEARCH DIRECTION 59 5.3.1 Limitations of the thesis 59 5.3.2 The research direction 60 Summary of chapter 61 REFERENCES 62 APPENDIX 65 APPENDIX 67 LIST OF ABBREVIATIONS ABBREVIATION MEANING FEM Fixed Effects Model F&B Food and Beverage GLS Generalized Least Squares (GLS) GROWTH Growth opportunity LIQID Liquidity NDTS Non-debt tax shield OLS Ordinary Least Square REM Random Effects Model ROA Profitability SIZE Firm‘s size TANG Tangibility TAX Corporate income tax UNI Uniqueness of products 58 Secondly, F&B enterprises can enhance high-efficiency businesses and seek pertinent credit capital According to the research results, the ROA factor has a negative impact on the capital structure of F&B companies listed on the Vietnam Stock Exchange (with a Beta coefficient of -0.3244) When operating effectively, instead of using debt, F&B businesses can take advantage of internal capital from retained earnings because this is a lower-cost capital than debt Besides, when having business efficiency, F&B enterprises will be more appreciated by creditors as well as more trusted by investors in the financial market, from which, enterprises can raise capital from foreign investors, investors in the market at a cheaper cost Thirdly, Financial managers must constantly improve their knowledge, apply modern financial management models, and risk measurement models for F&B businesses in financial decisions Especially decisions associated with fixed assets of enterprises The taginiblity factor includes a negative effect on the capital structure of F&B companies listed on the Vietnam Stock Exchange (with a Beta coefficient of -0.21) It shows that if food businesses make the correct and reasonable decisions about fixed assets, it will help businesses improve capital structure efficiency, and effectively use fixed capital of enterprises Fourthly, F&B businesses should maximize the benefits of using debt because debt is considered a tax shield from depreciation and this factor has a negative impact on the capital structure of the F&B companies listed on the Vietnam Stock Exchange with a Beta coefficient of -0.7847 Debts are also known as financial leverage because if effectively exploiting borrowed capital, F&B enterprises will improve the efficiency of using equity To maximize the benefits of debt, F&B businesses should flexibly use different forms of debt instead of relying heavily on commercial banks For example, F&B businesses can lease finance, issue bonds, convertible bonds Fifthly, because liquidity has a negative impact on the capital structure of food companies listed on the Vietnam Stock Exchange with a Beta coefficient of 0.0608, F&B businesses need to concentrate on their liquidity, ensure that 59 enterprises' debts have funding sources, short-term capital sources to pay all debts, avoid the insolvency of F&B enterprises, adversely affecting the capital structure of enterprises Finally, regarding the uniqueness of products (UNI), it has a negative effect on the capital structure of F&B companies listed on the Vietnamese stock market with a Beta coefficient of -0.1224 This ratio is measured by the cost of goods/net sales Depending on the uniqueness of the product, this coefficient will be different For products of F&B enterprises with high-profit margins and low costs, the greater the specific characteristics of the product and vice versa Therefore, businesses need to focus on reducing the cost of goods and increasing net sales of products, this will help to increase profit margins for businesses 5.3 THESIS LIMITATIONS AND RESEARCH DIRECTION 5.3.1 Limitations of the thesis There are some limitations to the thesis The first constraint of the thesis is the research findings on the factors affecting the capital structure of food and beverage firms listed on the Vietnam stock exchange, which were based on a sample of only 27 enterprises with a total of 297 observations from 2009 to 2020 Because this study has a small number of years of research and observational samples compared to other studies by authors around the world, the results have the low reliability of the data and cannot be regarded as swings in the F&B industry's economic cycle The second limitation is the problem of building and selecting representative variables for the analytical model Because there are variables that cannot be measured such as growth opportunity (GROWTH) and tax (TAX), they are not included in the research model The third limitation is that the study only focuses on finding out the micro factors affecting the capital structure, but has not studied other factors affecting capital structure such as macro factors of the economy, behavioral finance, management perspective, leadership, and business tradition 60 5.3.2 The research direction Although the research hypotheses have been answered, in this study, the author has only introduced a few factors that affect the capital structure of F&B firms Therefore, researchers might pursue a more in-depth examination of the capital structure as a topic for future research by looking into the impact of various macroeconomic variables, behavioral finance, management perspective, leadership, and business tradition on the capital structure at various moments in time 61 SUMMARY OF CHAPTER This chapter uses the results of the regression model to review the factors that affect the capital structure of F&B enterprises listed on the Vietnam securities market From that research result, the author discusses the analysis limitations within the thesis and provides policy recommendations to boost the capital structure suitable for their business activities This thesis has additionally achieved bound achievements and ensures the planned research content However, this thesis still has certain limitations on research period, knowledge, and methods Therefore, the author will pursue this subject in subsequent studies to search for more accurate assessments of the determinants affecting the capital structure of F&B enterprises listed on the Vietnam securities market 62 REFERENCES Aamer, Muhammad, Vo & Linh (2019), ‗The determinants of capital structure: Evidence from SAARC countries‘, International Journal of Finance & Economics – Wiley Abdulazeez Y.H, Saif-Alyousfi (2020), ‗Determinants of capital structure: evidence from Malaysian firms‘, Asia-Pacific Journal of Business Administration April Bhattacharjee, Mihir Dash (2021), ‗Determinants of Capital Structure In the India Cement Sector‘, Asian Journal of Economics, Finance and Management Bùi Văn Thụy (2020), ‗Các nhân tố ảnh hưởng đến cấu trúc vốn doanh nghiệp niêm yết sàn chứng khốn TP Hồ Chí Minh‘, Tạp chí Kinh tế Dự báo số 15 tháng 5/2020 Dương Thị Thanh Hương (2021), ‗ Yếu tố ảnh hưởng đến cấu trúc vốn doanh nghiệp thực phẩm, đồ uống niêm yết thị trường chứng khốn Việt Nam‖, Tạp chí Tài kỳ tháng 3/2021 Đ.T.Hùng, P.Đ.Cường (2020), ‗The effect of capital structure on financial performance of Vietnamese listing pharmaceutical enterprises.‘, The Journal of Asian Finance, Economics and Business, Volume 7, Issue 9, 329-340 Huang, G & Song, F.M (2006), ‗The determinants of capital structure: Evidence from China.‘, China Economic Review, vol 17, no 1, pp 14-36 Jason Fernando(2019), Debt-to-Equity (D/E) Ratio, Retrieved from Debt-to-Equity (D/E) Ratio Definition (investopedia.com) Jie Lin (2019), ‗Determinants of Capital Structure: Evidence from China & UK Company Panel Data‘, International Journal of Finance & Economics Khaki & Akin (2020), ‗Factors affecting the capital structure: New evidence from GCC countries‘, Journal Of International Studies L.T.Dương, B.T.Đan & L.T.Hân (2020), ‗Nhân tố ảnh hưởng đến cấu trúc vốn doanh nghiệp ngành thực phẩm thị trường chứng khốn.‘, Tạp chí Tài kỳ tháng 3/2020 63 Lương Thị Thúy Diễm (2020), ‗Nhân tố ảnh hưởng đến cấu trúc vốn doanh nghiệp logistics thị trường chứng khốn Việt Nam.‘ ,Tạp chí Tài kỳ Tháng 3/2020 Nguyễn Thị Thúy Hạnh (2018), ‗Các nhân tố ảnh hưởng đến cấu trúc vốn công ty sản xuất thương mại Việt Nam.‘ ,Tạp chí Khoa học Đại học Mở Thành phố Hồ Chí Minh, 14, 142-152 Nguyễn Thanh Tâm et al (2020), ‗The relationship between capital structure and firm value: Case of listed companies in the food and beverages industry in Vietnam‘, Academy of Accounting and Financial Studies Journal, Volume 24, Issue 1, 2020 N.M.Nguyệt, T.T.Kiên (2020), ‗Factors affecting capital structure of listed construction companies on Hanoi Stock Exchange.‘ ,Journal of Asian Finance, Economics and Business Vol No 11 689–698 N.T.N.Quỳnh, L.H.Vinh, L.Đ.Luân (2020), ‗Các yếu tố tác động đến cấu trúc vốn doanh nghiệp niêm yết Sở Giao dịch Chứng khốn Hồ Chí Minh.‘ ,Tạp chí Khoa học & Đào tạo Ngân hàng Phan Thanh Hiệp (2017), ‗Phân tích nhân tố ảnh hưởng đến cấu trúc vốn doanh nghiệp sản xuất công nghiệp Việt Nam.‘, Luận án tiến sĩ, Đại học Ngoại thương Sarah & Mahmoud (2019), ‗Determinants of Capital Structure: Evidence from the UK‘, Journal of Modern Accounting and Auditing Sutomo, Sugeng Wahyudi (2020), ‗The determinants of capital structure in coal mining industry on the Indonesia Stock Exchange‘, Investment Management and Financial Innovations, Volume 17, Issue 1, 2020 The World Bank‘s Overview (2019) Retrieved from https://www.worldbank.org/en/country/vietnam/overview Titman, S & Tsyplakov, S (2007) A dynamic model of optimal capital structure Review of Finance, 11(3), 401-451 Titman, S., & Wessels, R (1988) The determinants of capital structure choice The Journal of Finance, 43(1), 1-19 64 Troy Adkins (2021), Optimal Use of Financial Leverage in a Corporate Capital Structure, Retrieved from https://www.investopedia.com/articles/investing/111813/optimal-usefinancial-leverage-corporate-capital-structure.asp T.V.Dũng & B.T.Đan (2021), ‗Các yếu tố tác động đến cấu trúc vốn doanh nghiệp niêm yết Thị trường chứng khoán Việt Nam‘, Tạp chí Khoa học & Đào tạo Ngân hàng TS.Nguyễn Thị Thành Vinh (2020), ‗Một số nhân tố tác động đến cấu trúc vốn doanh nghiệp Việt Nam nay‘, Industry and Trade magazine, 2020 Uus Ahmad Husaeni (2018), ‗Determinants of capital structure in companies listed in the Jakarta Islamic Index‘, International Journal of Economics, Management and Accounting 26 Võ Xuân Vinh (2016) ‗Determinants of capital structure in emerging markets: Evidence from Vietnam.‘ Research in International Business and Finance, 40, 105-113 65 APPENDIX List of 27 F&B enterprises Viet Nam used for analysis and evaluation No Name of firms Code Công ty cổ phần Xuất nhập An Giang AGM Công ty Cổ phần Bibica BBC Công ty Cổ phần Thực phẩm Bích Chi BCF Tổng CTCP Bia - Rượu - Nước giải khát Hà Nội BHN Công ty Cổ phần Đồ hộp Hạ Long CAN Công ty Cổ phần Tập đồn Dabaco Việt Nam DBC Cơng ty Cổ phần Bia Hà Nội - Hải Dương HAD Công ty Cổ phần Bánh kẹo Hải Hà HHC Cơng ty Cổ phần Tập đồn Kido KDC 10 Cơng ty cổ phần Đường Kon Tum KTS 11 Công ty Cổ phần Chế biến Hàng xuất Long An LAF 12 Cơng ty Cổ phần Mía đường Lam Sơn LSS 13 Công ty Cổ phần Lương thực Thực phẩm Safoco SAF 14 Công ty cổ phần Thành Thành Công - Biên Hịa SBT 15 Cơng ty Cổ phần Nước giải khát Chương Dương SCD 16 Công ty Cổ phần Xuất nhập Sa Giang SGC 17 Công ty cổ phần Mía đường Sơn La SLS 18 Cơng ty Cổ phần Bia Sài Gịn - Miền Trung SMB 66 19 Cơng ty Cổ phần Dầu Thực vật Tường An TAC 20 Cơng ty cổ phần Bia Hà Nội - Thanh Hóa THB 21 Cơng ty Cổ phần VinaCafé Biên Hịa VCF 22 Công ty Cổ phần Thực phẩm Lâm Đồng VDL 23 Công ty Cổ phần Sữa Việt Nam VNM 24 Công ty Cổ phần Vang Thăng Long VTL 25 Công ty Cổ phần Tập đồn MaSan MSN 26 Cơng ty Cổ phần Tập đoàn PAN PAN 27 Tổng CTCP Bia - Rượu - Nước giải khát Sài Gòn SAB 67 APPENDIX Steps to perform quantitative analysis using STATA 14 in the study on financial stability of 27 F&B enterprises listed on the Viet Nam‘s Exchange from 2009-2020 Step 1: Import data from excel file into STATA, with table data format import excel "C:\Users\Asus\OneDrive\Desktop\Khóa luận\Datakl.xlsx", sheet("Sheet1") firstrow encode NAME,gen(NAME1) xtset NAME1 YEAR panel variable: NAME1 (strongly balanced) time variable: YEAR, 2010 to 2020 delta: unit Step 2: Run descriptive statistics with the SUMMARIZE command for the variables in the model to exclude variables with inappropriate values that may affect the research results sum TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI Variable Obs Mean TLEV SIZE ROA TANG GROWTH 297 297 297 297 297 4100898 11.99866 1059572 2866924 1282375 TAX NDTS LIQID UNI 297 297 297 297 1751761 041425 2.129144 7374627 Std Dev Min Max 1720517 7901572 1057778 1597569 3268994 1.88e-09 10.29442 -.6455064 0041817 -.6415434 9767697 14.06347 7836998 8902965 2.132392 1587122 032373 1.441564 1354692 -1.870787 0002155 5387123 3249988 8149201 3144458 14.73417 1.063643 Step 3: Implement a simple regression model with Ordinary Least Squares (OLS) model 68 reg TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI Source SS df MS Model Residual 5.10886525 3.65326132 288 638608157 012684935 Total 8.76212658 296 029601779 TLEV Coef SIZE ROA TANG GROWTH TAX NDTS LIQID UNI _cons 0203586 -.42553 -.1672186 0059517 -.0302311 -.7611817 -.0718906 -.1209547 5371718 Std Err .0095306 0671442 0510534 0204185 0420288 2564799 0051695 0517869 1344251 t 2.14 -6.34 -3.28 0.29 -0.72 -2.97 -13.91 -2.34 4.00 Number of obs F(8, 288) Prob > F R-squared Adj R-squared Root MSE P>|t| 0.034 0.000 0.001 0.771 0.473 0.003 0.000 0.020 0.000 = = = = = = 297 50.34 0.0000 0.5831 0.5715 11263 [95% Conf Interval] 0016001 -.5576856 -.2677038 -.0342368 -.1129536 -1.265994 -.0820653 -.2228836 2725916 039117 -.2933743 -.0667334 0461401 0524914 -.2563688 -.0617159 -.0190259 8017519 Testing for heteroskedasticity and autocorrelation of the regression model imtest, white White's test for Ho: homoskedasticity against Ha: unrestricted heteroskedasticity chi2(44) Prob > chi2 = = 239.45 0.0000 Cameron & Trivedi's decomposition of IM-test Source chi2 df p Heteroskedasticity Skewness Kurtosis 239.45 94.64 0.96 44 0.0000 0.0000 0.3278 Total 335.05 53 0.0000 P-value < 0.05: Reject H0, there is heteroskedasticity in the regression model xtserial TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI Wooldridge test for autocorrelation in panel data H0: no first-order autocorrelation F( 1, 26) = 20.889 Prob > F = 0.0001 P-value < 0.05: Reject H0, there is autocorrelation in the regression model Step 4: Test for multicollinearity with CORR and VIF instructions 69 corr TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI (obs=297) TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI 1.0000 0.3025 -0.4613 -0.0362 0.0312 0.0006 -0.2168 -0.6513 -0.0503 1.0000 -0.0578 0.1453 0.1368 0.0542 -0.1934 -0.2748 -0.2429 1.0000 0.0222 0.0947 0.0099 0.1597 0.2990 -0.1193 1.0000 -0.0205 0.0588 0.5089 -0.2742 -0.2190 1.0000 -0.0018 -0.0789 -0.0307 0.0126 1.0000 0.1405 -0.0950 0.0202 1.0000 -0.0919 -0.1558 1.0000 0.0322 1.0000 vif Variable VIF 1/VIF NDTS TANG SIZE LIQID ROA UNI GROWTH TAX 1.61 1.55 1.32 1.30 1.18 1.15 1.04 1.04 0.621617 0.644210 0.755665 0.771680 0.849553 0.870714 0.961878 0.963124 Mean VIF 1.27 Step 5: Run the model with two methods: fixed effects regression model (FEM) and regression model random effects (REM) 70 xtreg TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI, fe Fixed-effects (within) regression Group variable: NAME1 Number of obs Number of groups = = 297 27 R-sq: within = 0.5804 between = 0.4221 overall = 0.4858 Obs per group: = avg = max = 11 11.0 11 corr(u_i, Xb) F(8,262) Prob > F = -0.0680 Std Err t P>|t| = = TLEV Coef SIZE ROA TANG GROWTH TAX NDTS LIQID UNI _cons 0700226 -.3184559 -.1496814 0263394 0313724 -1.184736 -.0485066 -.1612412 -.0910419 0116784 0577661 0494108 0148509 0296166 240807 0041968 0426997 1533331 sigma_u sigma_e rho 10260409 07587495 6464755 (fraction of variance due to u_i) 6.00 -5.51 -3.03 1.77 1.06 -4.92 -11.56 -3.78 -0.59 0.000 0.000 0.003 0.077 0.290 0.000 0.000 0.000 0.553 45.30 0.0000 [95% Conf Interval] 0470271 -.4322008 -.2469742 -.0029028 -.0269445 -1.658899 -.0567703 -.2453195 -.3929639 F test that all u_i=0: F(26, 262) = 14.33 0930182 -.2047111 -.0523885 0555817 0896893 -.7105725 -.040243 -.077163 2108801 Prob > F = 0.0000 xtreg TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI, re Random-effects GLS regression Group variable: NAME1 Number of obs Number of groups = = 297 27 R-sq: within = 0.5768 between = 0.4841 overall = 0.5219 Obs per group: = avg = max = 11 11.0 11 corr(u_i, X) Wald chi2(8) Prob > chi2 = (assumed) TLEV Coef Std Err z SIZE ROA TANG GROWTH TAX NDTS LIQID UNI _cons 0562533 -.3405272 -.1590344 0225507 0224211 -1.084646 -.051658 -.154073 0785227 0106949 0575818 0477379 0151085 0302303 2350099 0042194 0428341 1425615 sigma_u sigma_e rho 07538433 07587495 4967565 (fraction of variance due to u_i) 5.26 -5.91 -3.33 1.49 0.74 -4.62 -12.24 -3.60 0.55 P>|z| 0.000 0.000 0.001 0.136 0.458 0.000 0.000 0.000 0.582 = = 376.67 0.0000 [95% Conf Interval] 0352917 -.4533855 -.2525991 -.0070613 -.0368293 -1.545257 -.0599279 -.2380262 -.2008927 077215 -.227669 -.0654697 0521628 0816714 -.6240349 -.0433881 -.0701197 3579381 71 Step 6: Then conduct Hausman test to choose a suitable model for the research results hausman fem rem Coefficients (b) (B) fem rem SIZE ROA TANG GROWTH TAX NDTS LIQID UNI 0700226 -.3184559 -.1496814 0263394 0313724 -1.184736 -.0485066 -.1612412 0562533 -.3405272 -.1590344 0225507 0224211 -1.084646 -.051658 -.154073 (b-B) Difference sqrt(diag(V_b-V_B)) S.E .0137693 0220713 009353 0037887 0089513 -.1000901 0031514 -.0071683 004691 0046105 0127482 0525204 b = consistent under Ho and Ha; obtained from xtreg B = inconsistent under Ha, efficient under Ho; obtained from xtreg Test: Ho: difference in coefficients not systematic chi2(8) = (b-B)'[(V_b-V_B)^(-1)](b-B) = 67.04 Prob>chi2 = 0.0000 (V_b-V_B is not positive definite) The Hausman test gives a chi-squared value of 0.000 With a significance level of 0.01, this probability allows to reject hypothesis H0 Therefore, the appropriate model to analyze the impact of independent variables on capital structure is the Fixed-effect model (FEM) Step 6: Testing heteroskedasticity and autocorrelation of FEM If the model has heteroskedasticity and autocorrelation, then switch to GLS model to fix it xttest3 Modified Wald test for groupwise heteroskedasticity in fixed effect regression model H0: sigma(i)^2 = sigma^2 for all i chi2 (27) = Prob>chi2 = 2270.86 0.0000 72 xtserial TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI Wooldridge test for autocorrelation in panel data H0: no first-order autocorrelation F( 1, 26) = 20.889 Prob > F = 0.0001 After testing, we find that the FEM has heteroskedasticity (Prob>chi2=0,000) and autocorrelation (Prob > F=0,0001) Therefore, the author chooses the GLS model to repair these heteroskedasticity and autocorrelation Step 7: Run the GLS regression model to see the results and select the independent variables xtgls TLEV SIZE ROA TANG GROWTH TAX NDTS LIQID UNI, panels(h) corr(ar1) Cross-sectional time-series FGLS regression Coefficients: Panels: Correlation: generalized least squares heteroskedastic common AR(1) coefficient for all panels Estimated covariances = Estimated autocorrelations = Estimated coefficients = TLEV Coef SIZE ROA TANG GROWTH TAX NDTS LIQID UNI _cons 0334448 -.3244691 -.2100065 0234363 0025583 -.7847758 -.0608786 -.1223985 3565792 27 Std Err .0098057 0534169 0472021 0137186 0206754 2254294 0041776 0377907 1273047 (0.6131) Number of obs Number of groups Time periods Wald chi2(8) Prob > chi2 z 3.41 -6.07 -4.45 1.71 0.12 -3.48 -14.57 -3.24 2.80 P>|z| 0.001 0.000 0.000 0.088 0.902 0.000 0.000 0.001 0.005 = = = = = 297 27 11 385.60 0.0000 [95% Conf Interval] 014226 -.4291643 -.3025209 -.0034517 -.0379647 -1.226609 -.0690666 -.1964669 1070665 0526636 -.2197738 -.1174921 0503243 0430813 -.3429424 -.0526907 -.04833 606092 ... assess the impact of factors affecting capital structure of the F&B enterprises listed on Vietnam's stock market 2.1 OVERVIEW OF CAPITAL STRUCTURE 2.1.1 Definition of capital structure There are... enterprise, capital is invested in the production and business process in order to increase profits and increase the value of the enterprise The mobilization of capital on the one hand just meets the capital. .. structure situation of F&B companies listed on the Vietnam Stock Exchange, know the factors and the degree of influence of those factors on the capital structure of those enterprises, thereby proposing