(Luận văn) determinants of capital structure for listed construction companies in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDS t to ng hi ep VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS w n ad lo yi u yj th pl n ua al DETERMINANTS OF CAPITAL STRUCTURE FOR LISTED CONSTRUCTION COMPANIES IN VIET NAM n va m ll fu t n oi z BY z j ht vb NGUYỄN THỊ MỸ KHÁNH k m gm om l.c MASTER OF ARTS IN DEVELOPMENT ECONOMICS an Lu n va y te re HO CHI MINH CITY, November 2013 UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDS t to ng hi ep VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS w n ad lo u yj th yi DETERMINANTS OF CAPITAL STRUCTURE FOR LISTED CONSTRUCTION COMPANIES IN VIET NAM pl n ua al n va m ll fu n oi A thesis submitted in partial fulfilment of the requirements for the degree of t MASTER OF ARTS IN DEVELOPMENT ECONOMICS z z j ht vb gm NGUYỄN THỊ MỸ KHÁNH k m By om l.c an Lu Academic Supervisors: Assc Prof Dr NGUYEN TRONG HOAI n va y te re HO CHI MINH CITY, November 2013 CERTIFICATION t to “I certify that the substance of this thesis has not already been submitted for ng hi any degree and have not been currently submitted for any other degree ep I certify that to the best of my knowledge and help received in preparing this thesis and all sources used have been acknowledged in this thesis.” w n ad lo yi u yj th NGUYỄN THỊ MỸ KHÁNH pl n ua al n va m ll fu t n oi z z j ht vb k m gm om l.c an Lu n va y te re ACKNOWLEDGMENTS t to ng The process of writing a thesis is a collaborative experience involving the hi ep support and helps from many people I want to express my gratitude to those who give me the tremendous support to complete this thesis w n I am deeply indebted to my parents and my husband for their invaluable lo ad support and constant encouragement From my early childhood, my parents always u yj th teach me valuable lessons on the importance of learning The boundless love of my parents have accompanied with me as I continue my long journey on the pathway of yi pl intellectual acquisition n ua al I wish to express my heartfelt gratitude to Associate Professor Doctor Nguyen va Trong Hoai, Lecturer at Department of Economic Development, University of n Economics (HCMC), my supervisor, for his valuable suggestions during the time I fu m ll write this thesis His wide knowledge, excellent advice and logical way of thinking n oi have provided me a good basis in present this thesis t In addition, my special thanks should send to Dr Trương Đang Thuy for their z z help and sharing of their resources to complete this thesis successfully and in time vb j ht Finally, I take a pride in myself for working very hard to finish this thesis I k m realize that after each success stories, there is a process of lots of hard works, gm difficulties, obstacles and overcoming Even in the hardest time when I write this thesis, I always believe that great efforts will eventually to be paid off Thank for an n va November 2013 Lu Nguyễn Thị Mỹ Khánh om l.c the great time to learn and to grow up y te re (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam TABLE OF CONTENTS t to LIST OF TABLES ng hi ABSTRACT .2 ep CHAPTER I INTRODUCTION .3 1.1 Problem Statement w n 1.2 Research Objectives lo ad 1.3 Research Questions u yj th 1.4 Research Methodology yi 1.5 Research contribution .5 pl 1.6 Research Structure n ua al CHAPTER II LITERATURE REVIEW .7 va 2.1 Key concepts: n 2.2 Theoretical review .8 fu m ll 2.2.1 Trade-off theory n oi 2.2.2 Pecking order theory 10 t 2.3 Determinants of leverage: .12 z 2.3.1 Leverage and Tangibility: 13 z j ht vb 2.3.2 Leverage and Profitability 15 2.3.3 Leverage and Size .16 m k 2.3.4 Leverage and Growth .17 gm 2.3.5 Leverage and Liquidity .18 om l.c 2.4 Empirical studies review on determinant of leverage: 19 2.4.1 Empirical evidences finding from the world: 19 Lu an 2.4.2 Empirical evidences from Vietnam : 20 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam y te 3.2.1 Data 25 re 3.2 Data and description variable 25 n 3.1 Overview the construction industry in Vietnam: 23 va CHAPTER III RESEARCH METHODOLOGY .23 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam 3.2.2 Description variable 26 3.2.2.1 Dependent Variable 26 t to 3.2.2.2 Explanatory Variables 27 ng hi 3.3 Method of estimation .28 ep 3.3.1 Fixed effect (FE) estimator : .29 3.3.2 Random effect estimator (RE): 29 w n 3.3.3 Hausman specification test : .30 lo ad 3.4 Hypothesis .30 u yj th CHAPTER IV EMPIRICAL RESULTS .32 yi 4.1 Descriptive Statistic 32 pl 4.2 Empirical Result 34 n ua al 4.2.1 Hausman test: 34 va 4.2.2 Fixed effects model (FEM) .36 n 4.2.2.1 Tangibility 37 fu m ll 4.2.2.2 Profitability 38 n oi 4.2.2.3 Size .39 t 4.2.2.4 Growth .39 z 4.2.2.5 Liquidity .40 z j ht vb 4.3 Public and Private Firm Comparison 41 4.3.1 Descriptive Statistic 41 m k 4.3.2 Determinants of Financial Leverage 42 gm CHAPTER V CONCLUSION AND RECOMMENDATION 44 om l.c 5.1 Conclusion .44 5.2 Policy recommendation: 46 Lu an 5.2.1 Recommendations for construction firms: .46 n va 5.3 Limitation: .49 re REFERENCE y te APPENDIX (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam ABBREVIATIONS t to ng SMEs: small and medium size enterprises hi ep WTO: World Trade Organization w GDP: Gross Domestic Product n lo ad FE: Fixed effects u yj th RE: Random effects yi pl TEs: Transition economies n ua al n va m ll fu t n oi z z j ht vb k m gm om l.c an Lu n va y te re (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam LIST OF TABLES t to ng hi Table 2.1 Summary of leverage determinant 18 ep Table 3.1 Variable, Description and expected sign 28 w Table 4.1 Descriptive Statistics of Leverage, short-term leverage, long-term n ad lo leverage and Explanatory Variables with construction firms 33 u yj th Table 4.2 Hausman Test 35 yi Table 4.3: Result of Fixed effects regression in construction sector 36 pl n ua al Table 4.4 Summary of leverage determinants 37 Table 4.5 Descriptive Statistics of Public and Private Firms 41 va n Table 4.6 Regression Result of Public and Private Firms .42 m ll fu t n oi z z j ht vb k m gm om l.c an Lu n va y te re (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam ABSTRACT t to This study explores the determinant of capital structure of Vietnam listed ng construction companies using panel data for the period of 2007-2012 Tangibility, hi ep profitability, size, growth and liquidity use as independent variables Total leverage, short-term leverage and long-term leverage were dependent variable The research w finds that all the selected independent variables were significantly associated to at n ad lo least one of the leverage ratios except profitability Profitability seems to have no u yj th significant effect to the capital structure of Vietnamese construction listed firms A positive significant related to leverage and tangibility and growth variables; a yi negative relationship between leverage and liquidity also supported the implication pl n ua al of pecking order theory while a positive significant of size variable confirmed to prediction of trade off theory The study also finds that there are different in va determinants of capital structure between public and private firms in construction n m ll fu industry about the profitability and growth variables Size, profitability and liquidity effect to leverage of public firms while size, growth and liquidity have a relation to n oi leverage of private firms Public firms tend to use more debt than private firms t z z j ht vb k m gm om l.c an Lu n va y te re Keywords: capital structure, leverage, construction companies (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam CHAPTER I INTRODUCTION t to ng 1.1 Problem Statement hi ep Capital structure is not a new area to study From the first research of capital structure was presented by Modigliani & Miller (1958), after that a lot of researches w try to identify determinants of capital structure But the results are still an argument n ad lo problem in financial and inconsistent among researchers at different countries and different industries Myers (1984) also showed that “the average debt ratio will vary u yj th from industry to industry because assert risk, asset type and requirement for external yi fund also vary by industry” In Vietnam, there are only a limited number of studies pl n ua al on determinant of capital structure among Vietnam firms Some of these studies just focused on listed firms (Dzung Nguyen et al 2011) or small and medium size n va enterprises (SME) (Nguyen, Tran Dinh Khoi 2006) and the empirical results also m ll fu have conflicts with the results from many other researches in the world n oi Corporate financing means that all the money economy expressed through t mobilizing and using capital in order to maximize the value of company In there, z capital structure is the ratio between debt and equity to finance for the enterprise z vb Specifying the capital structure is an important issue not only for the manager but j ht also for the financial officer to build up the logical funding policy to ensure the m k illiquid and to salvage the effect of debt margin to upgrade the value of the gm company In the process of activity the enterprises have to face the important om l.c decisions such as investment, finance, dividing dividend, etc Each decision effects to the value and the capital structure of the enterprise Decisions involving capital Lu structure are vital for every business organization Management has to carefully an (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam y te studies about the determinant of capital structure, each research disperse in different re consider how factors affect to capital structure of firms There are many empirical n However, in order to achieve optimal capital structure, the manager has to va ensure that their capital structure decisions maximize their firm value (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam 4.3.2 Determinants of Financial Leverage t to Regression result of public and private firms as follow ng Table 4.6 Regression Result of Public and Private Firms hi ep Variables w Constant n lo ad Tangibility Profitability pl n ua al Growth yi u yj th Size Liquidity n va Public Firms (S.E.) 49099*** (.1799) -0.1042 (.08095) 06844** (.03062) -.77943*** (.2751) 02604 (.01798) -0.0879*** (.02453) 120 0.2964 m ll fu Number of observation R2 Private Firms (S.E,) 3936039*** (.143136) 0.112525 (.07446) 0.06789** (.026209) -.214769 (.1513372) 0.02241* (.0134162) -.0934054*** (.0140991) 174 0.3112 n oi Table 4.6 is obtained from fixed effect model regression with public data In t public firms, growth and tangibility explanatory variables not affect financial leverage z z of firm, while size, profitability and liquidity variables strongly influence leverage vb j ht In particularly, profitability and liquidity variables are negatively significant k m related to leverage, whereas size is positive significant associated to leverage This gm implies that it is possible supported from government to public firms and large firms om l.c tend to use more debt than small firms The firms with more profit tend to use less debt because they prefer to use internal fund as retained earnings to external Lu funds It is particularly important to be aware that growth does not impact an significantly on financial leverage of public firm Tangibility is negative n va insignificant related to leverage This result is the same with the result above debt than the one of private firms 42 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam y te to total leverage Public firms have a higher shot-term debt but a lower long-term re Tangibility only affects to short-term and long-term leverage but not have impact (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam The result of regression with data of private firms is presented in table 4.7 Size and growth variables have positive significant influence on financial leverage t to of private firms whereas liquidity is negative related to leverage Otherwise, ng hi tangibility and profitability variable is not significant for private firms It is obvious ep that size, growth and liquidity determine the financial leverage degree of private firms w n ad lo From the result above, we see that liquidity also have a negative significant u yj th related to leverage of public and private companies in construction sector Tangibility has insignificant statistic to both of all But one point seemed to be yi different between public and private companies is the influence of growth and pl n ua al profitability variable Growth variable has a positive significant related to capital structure of private companies, but no impact to public firms is found Otherwise, va profitability has a negative significant to public firms but not impact to private n leverage than private firms m ll fu firms And one important point is that public companies tend to have higher t n oi z z j ht vb k m gm om l.c an Lu n va y te re 43 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam CHAPTER V CONCLUSION AND RECOMMENDATION t to ng 5.1 Conclusion hi ep The research investigated the determinants of construction sector firms with data set of 49 Vietnamese listed firms in construction sectors from 2007 to 2012 w n Dependent variables are total leverage, short-term leverage and long-term leverage lo ad and independent variables are tangibility, profitability, size, growth and liquidity u yj th The measure of all variables bases on book value By using Stata software, Data descriptive statistic suggests that, on average, the leverage of construction sector yi pl companies is still very high and higher than the one of listed firms in Vietnam in the n ua al research of Dzung Nguyen at al (2011), higher than in developing countries, and higher than in some TEs such as Czech Republic, Russia and China In there, va n amount of long – term debt (only 11.86%) is lower than short-term debt (55.3%) fu m ll The lower amount of long-term leverage indicates that Vietnam construction listed n oi firms prefer to use short-term debt rather than long-term debt Source of capital for t long-term investment might be financed by equity and banks loan supply mostly for z short-term capital financing In other hand, the profitability is very low with mean z vb only 4.97% This is due to the frozenness of real estate market, tighten public j ht investment, lower level of bank credit, increase interest rate, etc these have caused m k serious problem to construction enterprises The higher of leverage make firms meet gm problem with liquidity lead to bankruptcy because the interest rate is very high in om l.c the last period so the cost of interest loan is also high and firms can’t afford to repay for bank Hundred of enterprises go bankruptcy One of the reasons is due to the an Lu financial imbalance because the enterprises use short –term debt to finance for longterm investment as buying new equipment, building factory, etc When the short- y te re 44 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam n they have problem in balancing financial Moreover, tangibility ratio is still low va term loan is coming to pay, the firms not have resources to repay for bank So (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam only 21.17% which reflects the status out of date of machine equipment, small production scale that leading to risk of low competition t to The study employs methods of panel regression as fixed effect and Random ng hi Effects and bases on two main theories as trade off theory and pecking order theory ep to test whether they explain the determinant of capital structure in construction sector firms Hausman test chooses fixed effects method to regress data w n ad lo By using fixed effect model (FEM) in regression, this study finds that all u yj th independent variables were confirmed to be a relevant determinant of at least one of the measures of leverage except profitability Profitability has no impact to all of yi leverage because of the lower profit in construction sector firms so firms not pl n ua al have retained earnings to finance their operation as prediction of pecking order theory Liquidity has a negative correlation with total and short-term leverage but a va positive with long-term leverage Liquid firms prefer to use accumulated cash and n m ll fu liquid assets rather than to use external finance Tangibility has a negative significant related to short-term leverage but a positive significant related to long- n oi term leverage Size and Growth variables also have a positive associated to total t leverage and long-term leverage It means that construction firms prefer on debt z z financing to equity financing for expansion and growth j ht vb There are also different factors that effect to determinant of capital structure m k in public and private firms Public firms tend to use more debt than private firms gm due to government support Liquidity has a negative impact to leverage of all public om l.c and private firms whereas size has a positive related to both of all Tangibility has no impact to leverage of public and private firms Furthermore, growth only has Lu effects to private firms and profitability has a negative significant related to an n va leverage of public firms off theory A negative significant to leverage of liquidity variable and a positive 45 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam y te explaining determinant of leverage in Vietnam construction listed firms than Trade re From the result above, it is clear that pecking order theory is better in (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam significant of tangibility and growth confirm pecking order theory whereas a positive relationship between size and leverage also consistent the trade off theory t to ng 5.2 Policy recommendation: hi ep The financial leverage degrees of construction firms can be predicted by using the result of this study In particular, entrepreneurs can adjust their financial w n leverage to stable degree in case the leverage value is deviated from mean value lo ad Furthermore, optimal financial leverage figure is also defined based on regression u yj th results Then, firms can use such optimal value to build potential financial leverage degree and maintain debts close to their targets values yi pl In this research, we find that there are four variables determine capital n ua al structure of construction industry such as tangibility, size, growth and liquidity n va while profitability does not impact to leverage Through the influencing of these fu variables, the researcher will give some recommendations for firms to improve the m ll capital structure of construction industry n oi 5.2.1 Recommendations for construction firms: t z 1/ Tangibility: z vb Tangibility plays a vital role in borrowing from the bank as loan collateral j ht k m The mean of tangibility is only 21.17%, a very low rate compared to the scale of gm construction industry It reflects the status out of date of machine equipment, small production scale that leading to risk of low competition, lack of technical While the om l.c construction works are more and more complicated and need new technology in building In other hand, the investor and the clients also need better high quality Lu an from their projects Hence, the firms should have innovation new technology and 46 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam y te companies which will provide loans and guarantees on easier term than traditional re of project in Vietnam The enterprises can use leasing services of the Leasing n competitiveness for local construction enterprises to enable them to undertake most va tools for improving efficiency and quality and improve the capacity and (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam banks to contractors and consults, firms will be supplied loans for buying new equipment which will act as guarantor for loan secured t to ng Tangibility has a negative significant to short-term leverage but positive to hi ep long-term leverage It means that firms with higher tangibility tend to have more long term debt because they can use tangibility as collateral for long-term loan So w with lower tangibility, the bank refuses to supply long-term debt for investment new n ad lo project Consequently, the firms have to use short-term debt to finance for long – u yj th term business as building new office or buying new machine, ect To avoid this problem, firms shouldn’t use short-term debt to finance for long-term investment to yi avoid financial imbalance “Maturity matching” should be use on firm book where pl n ua al there is a match between current assets and short-term debt and a match between long - term debt and fixed assets n va 2/ Size and Growth: m ll fu Both of them have a positive significant with total and long-term leverage n oi Firms would like to borrow more to finance for their expansion creasing net sale t and growth of total asset Larger firms have difficulty in accessing to capital z z markets of equity and bonds and still rely on external fund rather than equity vb j ht issuance It gives that the bond markets are in the early stage of development k m Therefore, the regulator should have great efforts on development of the Vietnam’s gm capital market One the capital market development, the firms can be easy to mobilize capital from this market to finance for their investment and innovation om l.c technology Particularly, when firms need long term debt to finance for long term capital instead of using short-term debt to avoid problem of imbalance capital 47 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam y te production may be long stagnant in the amounts of construction progress that lead re usually have long productive cycle (construction progress) so the capital for n the construction firms va Another problem of construction industry is that an Lu investment as building or buying machinery, they should issuing equity to mobilize (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam to risk in capital in future time Hence, enterprises have to opt to finance reasonable their capital by liabilities or equity in order to have the lowest cost of financial and t to limited in happening risk in this stage ng hi ep 3/ Liquidity: Liquidity has a significant positive with long-term leverage and a negative w n significant to short-term and total leverage Firms have no need to use total and lo ad short-term leverage when increasing liquidity and using short-term debt to finance u yj th for long-term investment This will make imbalance in financial So the firms yi should invest much more on short-term assets but not using short-term debt to pl invest on long-term assets as buying new machinery, building new office, etc n ua al One of another the problem of construction industry is that the short-term n va receivable and inventories of firms are very high because of the difficulty in real m ll fu estate sector so the investor can’t afford payment for the contractor That leads to the capital for production may be long stagnant in the amounts of construction n oi progress So firms should choose project which have a clearly source of capital t payment to pay for contractor to avoid draining capital of firms Firms should z z collect account receivable as soon as possible to limit the status of occupied capital j ht vb and increase the capacity of firms’ finance k m 4/ Recommendation for public and private firms: gm The public firms are easier to access credit from the bank than private firm om l.c due to their relationship with state – owned commercial bank so there is an unfair Lu treatment for private construction firms Hence, the commercial bank should ensure an that all firms enjoy the same opportunity to access credit to promote the private n va development y te re 48 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam 5.3 Limitation: t to The limitation of this research is that the data only focus on construction ng sector which are listed in the main board of Ho Chi minh and Hanoi Securities hi Trading Center In reality, there are many other sectors in Vietnam stock exchange ep so that this result can not represent for the result of other sectors in Vietnam w n The research only uses available data collection of 49 listed firms in lo ad construction sector in Hanoi and Ho Chi Minh Securities Trading Center and not u yj th include non listed firm because of difficulty in collecting data So the sample size is too small and the statistical result is not convincing enough to reflect the overall yi pl development of whole industry n ua al In other hand, this study only considers about firms specific characteristics n va such as tangibility, size, profitability, growth and liquidity effect to leverage of fu construction sector These factors only explain 26.39% of leverage ratio Some m ll other important variables of country specific factors aren’t cared about while they n oi are found to have significant related to leverage by many previous researches in t Vietnam and around the world Thus, these factors should include in the equation of z determinant of leverage Consequently, further researches should be done with more z j ht vb explanatory variable that might explain variation in leverage of firms and broaden the scope of the study by collecting more data with non listed firms k m gm Besides, only two theories in capital structure are considered in impact to the om l.c determinant of capital structure in construction sector firms Further research should widen with other theories such as agency cost theory, market timing theory, etc an Lu n va y te re 49 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam 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(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam n Nguyen Tran Dinh Khoi and Ramachandran Neelakanta Capital structure in small and medium-size enterprises: The case of Vietnam Asean Economic Bulletin 2006 pp 192-211 va Murray, Z and K.G., Vidhan (2007):” Which factors are reliably important?” (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam Nivorozkin (2002), “Capital structure in Emerging stock Market: the case of Hungary”, The developing Economies t to ng Nivorozhkin (2003): “The dynamics of capital structure in transition economies”, Bank of Finland, Institute in Transition, BOFIT discussion paper series hi ep Nivorozhkin (2005):”Financing choices of firms in EU accession countries”, unpublished paper w n Pinches, G.E and Mingo, K.A (1973) “A multivariate analysis of industrial bond ratings”, Journal of Finance ad lo yi u yj th Phillipe, G et al (2003), “The capital structure of Swiss companies: An empirical analysis using dynamic panel data” pl Rajan and Zingales (1995): “What we know about capital structure? Some evidence from international data”, Journal of Finance n ua al n va Titman, S and Wessels, R (1988): “The determinant of capital structure choice”, journal of finance fu m ll Trần Hùng Sơn, (2008) “Các nhân tố tác động đến cấu vốn công ty niêm yết TTCK Việt Nam”, http://www.saga.vn/Taichinh/Cautrucvon/Cautrucvon1/8938.saga t n oi z Wald, J.K (1999): “how firms characteristics affect capital structure: An international comparison”, journal of Financial Research z vb j ht Zehra, R (2008), “Determinant of capital structure: evident from UK panel data” k m gm om l.c an Lu n va y te re (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam APPENDIX t to Appendix List of 49 construction companies in this sample ng List of 49 companies hi ep w 16 SDT 31 C92 46 ICG BT6 17 SJE 32 VC3 47 CTI BTC 18 CTN 33 SDD 48 THG CDC 19 SD9 34 VE9 49 LUT CII 20 S91 35 VC6 DIC 21 MCO 36 B82 22 S55 37 HUT 23 S99 38 L18 24 SD6 39 L43 n BCE ad lo n ua al LCG pl L10 yi u yj th HAS 40 TV4 11 SC5 26 SD5 12 UIC 27 SD7 13 CID 28 SIC 14 VC2 29 CIC 44 VCC 15 MEC 30 VNE 45 SDP n 25 SNG n oi va 10 PTC m ll fu 41 CNT 42 L61 43 V11 t z z j ht vb k m gm om l.c an Lu n va y te re (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam Regression from Fixed effects model for all sample t to For total leverage ng xtreg leverage tangibility size profitability growth liquidity, fe hi ep Number of obs Number of groups = = 294 49 R-sq: within = 0.2639 between = 0.4305 overall = 0.3835 Obs per group: = avg = max = 6.0 corr(u_i, Xb) = 0.2605 F(5,240) Prob > F w Fixed-effects (within) regression Group variable: code n ad lo leverage u yj th 0215341 0718339 -.0077601 0215082 -.0958766 3993532 yi tangibility size profitabil~y growth liquidity _cons Coef pl t 0549331 020142 0495516 0107184 012096 1129302 P>|t| 0.39 3.57 -0.16 2.01 -7.93 3.54 0.695 0.000 0.876 0.046 0.000 0.000 17.21 0.0000 [95% Conf Interval] -.0866785 0321563 -.1053717 000394 -.1197046 1768923 1297466 1115115 0898514 0426224 -.0720487 6218141 n ua al sigma_u sigma_e rho Std Err = = 10917515 06502222 73816424 (fraction of variance due to u_i) va F test that all u_i=0: F(48, 240) = 14.95 Prob > F = 0.0000 n m ll fu For short-term leverage within = 0.5434 between = 0.7699 overall = 0.7029 = = 294 49 Obs per group: = avg = max = 6.0 z R-sq: Number of obs Number of groups t Fixed-effects (within) regression Group variable: code n oi xtreg shorttermleverage tangibility size profitability growth liquidity, fe z vb F(5,240) Prob > F = 0.4152 P>|t| tangibility size profitabil~y growth liquidity _cons -.5224745 0118947 -.0671101 0012921 -.1635055 8252199 0507409 0186049 0457701 0099005 0111729 104312 sigma_u sigma_e rho 08439361 06006009 66380395 (fraction of variance due to u_i) -.6224289 -.0247549 -.1572725 -.0182108 -.185515 619736 -.4225201 0485444 0230523 020795 -.141496 1.030704 om l.c Prob > F = 0.0000 an Lu 9.66 0.000 0.523 0.144 0.896 0.000 0.000 gm -10.30 0.64 -1.47 0.13 -14.63 7.91 [95% Conf Interval] k Coef F(48, 240) = t 57.12 0.0000 m shortterml~e F test that all u_i=0: Std Err = = j ht corr(u_i, Xb) n va y te re (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam For long-term leverage xtreg longtermleverage tangibility size profitability growth liquidity, fe t to ng hi ep Number of obs = Number of groups = 294 49 R-sq: within = 0.3696 between = 0.4550 overall = 0.4314 Obs per group: = avg = max = 6.0 corr(u_i, Xb) = 0.1501 F(5,240) Prob > F w Fixed-effects (within) regression Group variable: code n 28.14 0.0000 ad lo = = u yj th longtermle~e 5169712 052443 -.0050996 018598 0643775 -.3702074 yi pl 0495711 0181759 0447149 0096722 0109153 1019071 10.43 2.89 -0.11 1.92 5.90 -3.63 n ua al P>|t| [95% Conf Interval] 0.000 0.004 0.909 0.056 0.000 0.000 4193212 6146211 0166383 0882477 -.0931833 0829842 -.0004553 0376513 0428754 0858796 -.5709539 -.1694608 n 09175818 05867541 70977092 (fraction of variance due to u_i) m ll fu F(48, 240) = 14.08 Prob > F = 0.0000 t F test that all u_i=0: n oi sigma_u sigma_e rho t va tangibility size profitabil~y growth liquidity _cons Coef Std Err z z j ht vb Appendix Result of regression for public firms For total leverage xtreg leverage tangibility size profitability growth liquidity, fe Obs per group: = avg = max = within = 0.2964 between = 0.5394 overall = 0.4601 F(5,95) Prob > F = 0.3195 = = sigma_u sigma_e rho 08187802 05810147 66509418 (fraction of variance due to u_i) P>|t| 0.201 0.028 0.006 0.151 0.001 0.008 [95% Conf Interval] -.2649155 0076516 -1.325665 -.0096518 -.136618 1337953 0565119 1292346 -.2331979 0617383 -.0391956 8481963 n 8.74 Prob > F = 0.0000 (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam y te F(19, 95) = re F test that all u_i=0: t -1.29 2.24 -2.83 1.45 -3.58 2.73 va 0809538 0306216 2751458 0179801 0245365 1799271 Std Err an Coef -.1042018 0684431 -.7794315 0260433 -.0879068 4909958 8.00 0.0000 Lu leverage tangibility size profitabil~y growth liquidity _cons 6.0 om l.c corr(u_i, Xb) 120 20 gm R-sq: = = k Number of obs Number of groups m Fixed-effects (within) regression Group variable: code (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam (Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam(Luận.văn).determinants.of.capital.structure.for.listed.construction.companies.in.vietnam