MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING GRADUATION THESIS DETERMINANTS OF CAPITAL STRUCTURE OF THE RETAIL BUSINESS ENTERPRISES LISTED ON VIETNAM’S STOCK MARKET Major Finan[.]
MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING GRADUATION THESIS DETERMINANTS OF CAPITAL STRUCTURE OF THE RETAIL BUSINESS ENTERPRISES LISTED ON VIETNAM’S STOCK MARKET Major: Finance – Banking Major code: 34 02 01 NGUYỄN ANH KHOA ii HO CHI MINH CITY, 2023 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING GRADUATION THESIS DETERMINANTS OF CAPITAL STRUCTURE OF THE RETAIL BUSINESS ENTERPRISES LISTED ON VIETNAM’S STOCK MARKET Major: Finance – Banking Major code: 34 02 01 Student: NGUYỄN ANH KHOA Code: 050607190203 Class: HQ7-GE05 SUPERVISOR Dr NGUYỄN DUY LINH iii HO CHI MINH CITY, 2023 iv ABSTRACT The thesis is performed in order to study the determinants of capital structure of the retail business enterprises listed on Vietnam’s stock market From the research result, recommendations or suggestions related to the act of distributing proportion of capital structure are made in order to improve the company operation’s efficiency The raw data of the research is extracted from the financial statements of 38 listed companies operating in the retail industry in the period of 2018-2022 After the collection of raw data, data for the research is calculated according to the variables that are used in the regression models On the next step, data is imported to Stata.17 to run the regression models and perform tests to find defects of the model For the result of the final model, the author used Feasible Generalized Least Squares (FGLS) estimation method to eliminate defects and ensure the model’s optimum The dependent variable is capital structure, which is represented by the financial leverage ratio The research used eight explanatory variables in the research, which are firm’s size, profitability, tangibility, growth opportunities, tax payment, non-debt tax shield, liquidity and uniqueness of product According to the result, factors that have positive effect on the changes of capital structure, which is financial leverage, are firm’s size and growth opportunities, while profitability, tangibility, non-debt tax shield and uniqueness of product influence capital structure negatively For the remaining variables tax ratio and liquidity, the relationship with financial leverage is inverse and the estimation result indicated that these two variables are statistically insignificant v TÓM TẮT Bài luận thực nhằm nghiên cứu yếu tố tác động lên cấu trúc vốn doanh nghiệp bán lẻ niêm yết thị trường chứng khoán Việt Nam Từ kết nghiên cứu, khuyến nghị liên quan đến hoạt động phân bổ cấu trúc vốn đưa nhằm nâng cao hiệu hoạt động công ty Dữ liệu thơ nghiên cứu trích xuất từ báo cáo tài 38 doanh nghiệp niêm yết hoạt động lĩnh vực bán lẻ giai đoạn từ 2018-2022 Sau thu thập đầy đủ liệu thô, liệu nghiên cứu tính theo biến sử dụng mơ hình hồi quy Ở bước tiếp theo, liệu nhập vào phần mềm Stata.17 để chạy mơ hình hồi quy thực kiểm định nhằm tìm khiếm khuyết mơ hình Đối với kết cuối mơ hình, tác giả sử dụng phương pháp ước lượng Bình Phương Tối Thiểu Tổng Quát Khả Thi (Feasible Generalized Least Squares-FGLS) để loại bỏ khiếm khuyết đảm bảo tối ưu mơ hình Biến phụ thuộc cấu trúc vốn, đại diện tỉ lệ địn bẩy tài Nghiên cứu sử dụng tám biến giải thích, có kích cỡ cơng ty, khả sinh lợi, tỉ lệ tài sản cố định, hội tăng trưởng, khoản thuế phải trả, chắn thuế ngồi lãi vay, tính khoản tính riêng biệt sản phẩm Theo kết quả, yếu tố có tác động tích cực lên thay đổi cấu trúc vốn, trường hợp đại diện địn bẩy tài chính, kích cỡ cơng ty hội tăng trưởng biến khả sinh lợi, tỉ lệ tài sản cố định, chắn thuế ngồi lãi vay tính riêng biệt sản phẩm lại có tác động tiêu cực lên thay đổi cấu trúc vốn Đối với biến lại tỉ lệ thuế phải trả tính khoản, tác động hai biến lên cấu trúc vốn âm kết ước lượng cho thấy hai biến khơng có ý nghĩa thống kê vi COMMITMENT My name is: Nguyễn Anh Khoa Class: HQ7-GE05 Student code: 050607190203 Thesis topic: Determinants of capital structure of the retail business enterprises listed on Vietnam’s stock market Major in: Finance-Banking Science supervisor: Dr Nguyễn Duy Linh I am the student of Ho Chi Minh University of Banking with major in Finance and Banking The author commits the thesis with topic: “Determinants of capital structure of the retail business enterprises listed on Vietnam’s stock market” has never been submitted 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, May 2023 The author Nguyễn Anh Khoa vii ACKNOWLEGEMENT Firstly, the author would like to thank teachers in Ho Chi Minh University of Banking for all the help and support about the knowledge, academic materials, guidance of collecting data during the process of writing the thesis In particular, I would like to express my deep gratitude to my supervisor, Dr Nguyen Duy Linh for the enthusiasm, dedication in the act of educating at university Your help and meticulous guidance played an important role for me to complete the thesis in a better way Finally, I would like to thank my family, my friends, who wholeheartedly help and support me with the best possible condition to complete the graduation thesis However, due to the limitation of experience and knowledge about the field, the thesis may contain many errors The author is looking forward to receiving any comments to improve the thesis in a better way Ho Chi Minh city, May 2023 The author Nguyễn Anh Khoa viii TABLE OF CONTENTS LIST OF ABBREVIATIONS xi LIST OF TABLES xii LIST OF FIGURES xii CHAPTER INTRODUCTION 1.1 REASONS FOR CHOOSING THE TOPIC 1.2 RESEARCH OBJECTIVES 1.2.1 General objectives 1.2.2 Specific objectives 1.3 RESEARCH QUESTIONS 1.4 SUBJECT AND AREA OF RESEARCH .4 1.4.1 Research subject .4 1.4.2 Area of research 1.5 METHODOLOGY 1.6 CONTRIBUTION OF THE THESIS 1.6.1 Theoretical contribution 1.6.2 Practical contribution .5 1.7 STRUCTURE OF THE RESEARCH CHAPTER 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 Measurement of enterprise’s capital structure .9 ix 2.2 THEORETICAL BACKGROUND OF CAPITAL STRUCTURE 10 2.2.1 Traditional perspective 10 2.2.2 Modigliani and Miller's theory (M&M theory) 10 2.2.3 The trade-off theory 12 2.2.4 Pecking order theory 13 2.2.5 Agency costs theory 14 2.3 DETERMINANTS OF A COMPANY’S CAPITAL STRUCTURE 15 2.4 PREVIOUS RESEARCH IN THE FIELD 24 2.4.1 Foreign studies .24 2.4.2 Domestic studies 27 SUMMARY OF CHAPTER .35 CHAPTER RESEARCH METHODOLOGY 36 3.1 RESEARCH PROCESS 36 3.2 RESEARCH MODEL 39 3.3 RESEARCH METHODOLOGY 42 3.4 DATA OF RESEARCH 46 CHAPTER RESEARCH RESULT AND DISCUSSION 48 4.1 DESCRIPTIVE STATISTIC .48 4.2 CORRELATION ANALYSIS 50 4.3 REGRESSION MODEL .52 4.3.1 Pool OLS, FEM and REM 52 4.3.2 The test’s results 53 4.4 RESEARCH RESULT 58 x SUMMARY OF CHAPTER .62 CHAPTER CONCLUSION AND RECOMMENDATIONS 63 5.1 RESEARCH CONCLUSION .63 5.2 RESEARCH RECOMMENDATIONS .64 5.3 THESIS LIMITATION AND DIRECTION OF RESEARCH 67 5.3.1 Thesis limitation 67 5.3.2 Direction of research 68 SUMMARY OF CHAPTER .69 REFERENCES 70 APPENDIX 74 APPENDIX 77