Factors affecting the capital structure of enterprises listed on the vietnamese stock market

THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY TRA THANH THANH FACTORS AFFECTING THE CAPITAL STRUCTURE OF ENTERPRISES LISTED ON THE VIETNAMESE STOC[.]

THE STATE BANK OF VIETNAM - MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY TRA THANH THANH FACTORS AFFECTING THE CAPITAL STRUCTURE OF ENTERPRISES LISTED ON THE VIETNAMESE STOCK MARKET GRADUATION THESIS MAJOR: FINANCE AND BANKING CODE: 52340201 ii HO CHI MINH CITY, 2022 THE STATE BANK OF VIETNAM - MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY TRA THANH THANH FACTORS AFFECTING THE CAPITAL STRUCTURE OF ENTERPRISES LISTED ON THE VIETNAMESE STOCK MARKET GRADUATION THESIS MAJOR: FINANCE AND BANKING CODE: 52340201 SUPERVISOR ASSOCIATE PROFESSOR PH.D DANG VAN DAN ii HO CHI MINH CITY, 2022 i ABSTRACT Author: Tra Thanh Thanh Title: factors affecting the capital structure of enterprises listed on vietnam’s stock market Language: English Instructor: Associate professor Ph.D Dang Van Dan The course examines factors affecting the capital structure of enterprises listed at HOSE and HNX in the period of 2012 -2021 Based on theories of capital larva and experimental research, the thesis has formulated hypotheses and research models The research data was collected from the financial statements of 39 companies listed in Vietnam Using pooled OLS, FEM, REM and Driscoll & Kraay regression methods, the thesis estimates the impact of factors on the debt ratio of the business The results of the regression show that there are important factors affecting the capital structure of businesses The characteristics of the enterprise, the size of the company and the turnover of assets are in a favorable relationship with the debt coefficient; The three factors of tangible assets, growth rate and liquidity are inversely related to the debt coefficient Through research, the thesis course has suggested a number of recommendations on capital structure for businesses Keywords:Influencing factors, capital structure, D&K method ii COMMITMENT The author commits an honorary statement about your scientific thesis, specifically as follows: Full name of the author: Tra Thanh Thanh, HQ6 – GE06, Student ID: 030134180495 Currently a 4th year student majoring in Finance and Banking, Banking University Ho Chi Minh City While studying at Banking University Ho Chi Minh, the author declares that the thesis: factors affecting the capital structure of enterprises listed on the Vietnamese stock market Science supervisor: Associate professor Ph.D Dang Van Dan This thesis has never been submitted to any anywhere else before The thesis is the author's own research work The research results are reliable, in which there are no previously published contents or contents made by others except for cited sources fully in the thesis Ho Chi Minh City, 2022 Author Tra Thanh Thanh iii ACKNOWLEDGMENT The author would like to thank the academic staff and support staff of Banking University Of Ho Chi Minh City because of their dedicated teaching and support It is a great honor and pride for the author to become a student at Banking University Of Ho Chi Minh City The author would like to express the deep gratitude to the Supervisor, Associate professor Ph.D Dang Van Dan, who whole heartedly supported, patiently guided and encouraged the author during doing this thesis iv CONTENT ABSTRACT i COMMITMENT ii ACKNOWLEDGMENT iii CONTENT iv LIST OF ABBREVIATIONS vii LIST OF TABLEAND FIGURE viii CHAPTER I INTRODUCTION 1.1 Reasons for choosing the topic 1.2 Research objectives 1.2.1 Overall research objectives 1.2.2 Specific research objectives 1.3 Research question 1.4 Research subject and scopes 1.4.1 Research subjec 1.4.2 Research scopes 1.5 Research contribution 1.6 Research outline CHAPTER II: LITERATURE REVIEW 2.1 Definitions 2.1.1 Capital structure 2.1.2 Optimum capital structure 2.2 Theories about the capital structure of the business 2.2.1 Miller and Modigliani theory 2.2.2 Static trade-off theory 2.2.3 Dynamic trade-off theory 10 2.2.4 Hierarchical order theory 11 v 2.2.5 Market timing theory .11 2.3 Indicators for measuring capital structure .12 2.4 Factors affecting the capital structure of the business .14 2.4.1 Profit margin .15 2.4.2 Tangible assets 15 2.4.3 Corporate income tax 16 2.4.4 The size of the business 16 2.4.5 Growth rate 17 2.4.6 Liquidity 17 2.4.7 Characteristics of corporate assets 18 2.4.8 Asset turnover 18 2.4.9 Outlook for capital markets .18 2.4.10 Fluctuations in the season, business cycle .18 2.4.11 Regulations from management levels 19 2.5 EXISTING EMPIRICAL STUDIES .19 2.5.1 Foreign research 19 2.5.2 Domestic research .20 2.6 Conclusion of Chapter 21 CHAPTER III: METHODOLOGY AND DATA 22 3.1 Experimental research model of factors affecting the capital structure of enterprises on the Vietnamese stock market 22 3.2 Research methods 26 3.2.1 Data processing method 27 3.2.2 Panel data regression 27 3.3 Collect data 33 3.4 Research sequence 33 vi 3.5 Conclusion of chapter 35 CHAPTER IV RESEARCH RESULTS AND DISCUSSION OF RESEARCH RESULTS 36 4.1 Descriptive statistical analysis 36 4.2 Correlation analysis 39 4.3 Selection of regression model 40 4.4 Model defect testing 45 4.4.1 Disability testCheck the phenomenon of model defect correlation 45 4.4.2 Check for variance changes 46 4.4.3 Test results by regression estimation method with standard errors in the research model 46 4.5 Discuss regression results 48 4.6 Conclusion of chapter 50 CHAPTER V SOME SOLUTIONS TO IMPROVE THE EFFECTIVENESS OF THE USE OF FINANCIAL LEVERAGE FOR BUSINESSES IN VIETNAM 51 5.1 Conclusion .51 5.2 Recommendations 53 5.3 Restrict .54 5.4 Conclusion of chapter 55 BIBLIOGRAPHY i ADDENDUM iv ... impact of factors on the debt ratio of the business The results of the regression show that there are important factors affecting the capital structure of businesses The characteristics of the enterprise,... affect the capital structure of enterprises listed on the Stock Exchange of Vietnam? What is the direction of influence of these factors? What are the problems that still exist in the capital structure. .. the extent and direction of the impact of factors affecting the capital structure of enterprises listed on the Vietnamese stock market 1.2.2 Specific research objectives In order to achieve the