STATE BANK OF VIETNAM MINISTRY OF EDUCATION & TRAINING HO CHI MINH UNIVERSITY OF BANKING ********************* Vo Minh Tin THE IMPACT OF CAPITAL STRUCTURE ON FIRM PERFORMANCE EVIDENCE FROM RETAIL COMP[.]
STATE BANK OF VIETNAM MINISTRY OF EDUCATION & TRAINING HO CHI MINH UNIVERSITY OF BANKING ********************* Vo Minh Tin THE IMPACT OF CAPITAL STRUCTURE ON FIRM PERFORMANCE: EVIDENCE FROM RETAIL COMPANIES ON THE VIETNAM STOCK MARKET GRADUATION THESIS Major: BANKING AND FINANCE CODE: 34 02 01 HO CHI MINH CITY- 2023 STATE BANK OF VIETNAM MINISTRY OF EDUCATION & TRAINING HO CHI MINH UNIVERSITY OF BANKING ********************* GRADUATION THESIS MAJOR: BANKING AND FINANCE CODE: 73 02 01 THE IMPACT OF CAPITAL STRUCTURE ON FIRM PERFORMANCE: EVIDENCE FROM RETAIL COMPANIES ON THE VIETNAM STOCK MARKET VO MINH TIN STUDENT CODE:050606180340 HQ6-GE04 Supervisor: Dr NGUYEN THI NHU QUYNH HO CHI MINH CITY- 2023 iii ABSTRACT The thesis titled "The impact of capital structure on firm performance: Evidence from retail companies on the Vietnam stock market" is based on previous research related to capital structure and other factors affecting firm performance The scope of the study is 25 Vietnamese retail companies in the period 2015-2022 The research aims to examine the relationship between capital structure and firm performance in the retail industry in Vietnam and provide evidence on the impact of capital structure on the development and success of companies in this sector The research topic utilizes multivariate regression models to analyze the impact of various independent variables on the efficiency of business operations The dependent variable in the models is the return on assets (ROA), and the independent variables include capital structure (CS), liquidity (LIQ), firm size (Size), tangible assets (Tang), business growth (GROW), economic growth (GDP), and inflation rate (INF) The regression models used in the study include Pooled-OLS, Fixed Effects Model (FEM), Random Effects Model (REM), Feasible Generalized Least Squares (FGLS), and System Generalized Method of Moments (S-GMM) Along with the models already mentioned, statistical tests were used to determine a comprehensive and statistically significant model.The estimation results of the models indicate that the variables CS, SIZE, LIQ, and GDP positively impact business efficiency In contrast, the variables Tang and INF have a negative impact Furthermore, the variable GROW does not show statistical significance in the study Based on the research results, the study contributes to providing suggestions and policy implications for retail companies to enhance business efficiency Keywords: Capital structure, Firm performance, S-GMM, Retail companies, Vietnam Stock market iv TĨM TẮT Khố luận có tựa đề "Tác động cấu trúc vốn đến hiệu hoạt động doanh nghiệp từ doanh nghiệp bán lẻ thị trường chứng khoán Việt Nam" dựa nghiên cứu trước liên quan đến cấu trúc vốn yếu tố khác ảnh hưởng đến hiệu suất doanh nghiệp thực doanh nghiệp Nghiên cứu tập trung vào 25 công ty bán lẻ Việt Nam khoảng thời gian từ năm 2015 đến năm 2022 Mục tiêu nghiên cứu xem xét mối quan hệ cấu trúc vốn hiệu suất doanh nghiệp ngành bán lẻ Việt Nam, cung cấp chứng tác động cấu trúc vốn phát triển thành công công ty lĩnh vực Bài nghiên cứu sử dụng mơ hình hồi quy đa biến để phân tích tác động biến độc lập khác lên hiệu hoạt động kinh doanh Biến phụ thuộc mơ hình lợi nhuận tài sản (ROA), biến độc lập bao gồm cấu trúc vốn (CS), khoản (LIQ), kích thước doanh nghiệp (Size), tài sản vật chất (Tang), tăng trưởng kinh doanh (GROW), tăng trưởng kinh tế (GDP) tỷ lệ lạm phát (INF) Các mơ hình sử dụng nghiên cứu bao gồm Pooled-OLS, Fixed Effects Model (FEM), Random Effects Model (REM), Feasible Generalized Least Squares (FGLS), System Generalized Method of Moments (S-GMM) Cùng với mơ hình đề cập, kiểm định thống kê sử dụng để xác định mơ hình tồn diện có ý nghĩa thống kê Kết ước lượng mô hình cho thấy biến CS, SIZE, LIQ GDP có tác động tích cực đến hiệu suất kinh doanh Ngược lại, biến Tang INF có tác động tiêu cực Ngồi ra, biến GROW khơng cho thấy ý nghĩa thống kê nghiên cứu Trên sở kết nghiên cứu, viết góp phần đưa đề xuất hàm ý sách cho công ty bán lẻ nhằm nâng cao hiệu hoạt động doanh nghiệp Keywords: Cấu trúc vốn, hiệu hoạt động doanh nghiệp, System Generalized Method of Moments (S-GMM), doanh nghiệp bán lẻ, thị trường chứng khoán Việt Nam v vi CONTENTS ABSTRACT iii TÓM TẮT .iv LIST OF ACRONYMS x LIST OF TABLES xi LIST OF GRAPH xi CHAPTER INTRODUCTION 1.1 REASON OF CHOOSING 1.2 THE OBJECTIVE RESEARCH 1.2.1 Overall objectives 1.2.2 Specific objectives 1.3 RESEARCH QUESTION 1.4 OBJECT AND SCOPE OF THE STUDY 1.4.1 Research object 1.4.2 Research scope 1.5 METHODOLOGY 1.6 CONTRIBUTION OF THE THESIS 1.7 THESIS STRUCTURE SUMMARY OF CHAPTER CHAPTER THEORETICAL FRAMEWORK AND LITERATURE REVIEW 2.1 THEORETICAL FOUNDATIONS OF BUSINESS PERFORMANCE 2.1.1 Definition of Firm Performance 2.1.2 Measuring the business performance 2.2 THE CONCEPT OF CAPITAL STRUCTURE 10 2.2.1 Perspectives on capital structure 10 2.2.2 Indicators proxy for capital structure 11 2.3 THEORETICAL BACKGROUND 16 2.4 EMPIRICAL EVIDENCE ON THE IMPACT OF CAPITAL STRUCTURE ON FIRM PERFORMANCE 22 vii 2.4.1 Foreign studies 23 2.4.2 Domestic studies 27 2.5 THE RESEARCH GAPS 28 SUMMARY OF CHAPTER 29 CHAPTER METHODOLOGY 30 3.1 METHODOLOGY 30 3.2 RESEARCH MODEL 38 3.2.1 Explain the variables and develop the thesis hypothesis 39 3.2.2 Independent variable 40 3.3 DATA 49 SUMMARY OF CHAPTER 51 CHAPTER RESEARCH RESULTS 52 4.1 DESCRIPTIVE STATISTICS 52 4.2 REGRESSION RESULTS OF THE RESEARCH MODEL 58 4.3 RESEARCH RESULTS AND DISCUSSION 64 SUMMARY OF CHAPTER 67 CHAPTER CONCLUSION AND POLICY IMPLICATIONS 68 5.1 CONCLUSION 68 5.2 POLICY IMPLICATIONS 69 5.3 LIMITATIONS OF THE THESIS AND PROPOSING DIRECTIONS FOR FURTHER RESEARCH 70 REFERENCES 72 viii DECLARATION OF AUTHENTICITY I declare that this is my independent thesis The data used in the thesis are of clear origin and published following the law The research results, in theory, are my research and analysis, honestly, objectively, and by following the reality of Vietnam These results have not been published in any previous papers Ho Chi Minh City, May 2023 The Author VO MINH TIN ix ACKNOWLEDGEMENT Firstly, I would like to send my profound gratitude to all the lecturers at Banking university, in the Office of Academic Affairs, and especially to the lecturer of faculty of Finance and the faculty of Banking lecturer while studying for a bachelor‘s degree at the Ho Chi Minh University of Banking Secondly, I would like to express my sincerest and most profound thankfulness to Dr Nguyen Thi Nhu Quynh for her guidance and patience in giving me valuable recommendations during my study period I am happy and fortunate to carry out this study under her supervisor Lastly, I thank my family for their support during my study and life Without encouragement and sacrifice, I would not have finished this thesis, so I express my special love and gratitude to them In the implementation process, mistakes are inevitable despite consulting, exchanging and absorbing suggestions from teachers and friends With the effort to improve more and more, I look forward to receiving valuable advice from teachers and friends I sincerely thank you! x LIST OF ACRONYMS CPI Consumer Price Index CS Capital structure FEM Fixed Effects Model FGLS Feasible Generalized Least Squares GDP Gross Domestic Product HNX Hanoi Stock Exchange HOSE Ho Chi Minh city Stock Exchange JSC Joint Stock Company MM theory Modigliani-Miller theorem POLS Pooled Ordinary Least Square REM Random Effects Model ROA Return on assets ROE Return on equity S-GMM Structural Generalized Method of Moments Tobin‘s Q the ratio between a physical asset's market value and its replacement value UPCOM Unlisted Public Company Market VIF Variance Inflation Factor