Capital structure and its determinants evidence from vietnam

1 BANKING ACADEMY INFORMATION RESEARCH RESULTS OF RESEARCH General information: - Topic name: Capital Structure and Its Determinants: Evidence from Vietnam - Name of student: Nguyen Gia Tan – 21A4010507 – K21CLCC Le Duc Viet – 21A4011018 – K21CLCA Nguyen Xuan Thu – 21A4020544 – K21CLCD Dang Quang Minh – 21A4030322 – K21CLCE - Majors: Finance Year: Year of training: - Instructor: PhD Nguyen Thi Le Thanh – Head of Auditing Department (Banking Academy) Topic goal: + Determinants of capital Structure of Vietnamese-listed firms on the stock market + Forming calculation methods, financial-related ratios to finalize statistical results + Proxy variables will show a positive or negative impact on capital structures like theoretically predicted signs in Table Consequently, the two variables representing the Non-debt tax shield have a negative effect on the firm’s leverage and are different from the predicted signs Novelty and creativity: Choosing evidence from Vietnam because the institutional environment for Vietnamese firms has some salient features, is divergent concerning high–developed countries where the state still maintains its controlling right in a large number of major firms Instead of just considering the impact of financial ratios, research has not only changed how impacts are calculated but also identified the debt maturity structure calculated based on the Tai ngay!!! Ban co the xoa dong chu nay!!! 17014125830421000000 book value and market value of equity Synonymously, the collection of big data and updating it in the recent years from 2017 to 2020, has influenced the outcome of the factors affecting financing decisions in developed capital markets in Vietnam Research results: The study proves that Vietnam has outstanding and different characteristics compared to developed countries, so Vietnam has a different institutional structure compared to those countries In addition, the results also show that the variables D/TA, NDTs and Industry have a positive effect on financial leverage, from which we see that businesses need a large amount of money to buy shares to implement their projects Therefore, they borrow from banks to meet their capital needs, so loans account for the majority of capital structure of Vietnamese enterprises Contribution in terms of socio-economic, education and training, security, defenestrate own and applicability of the topic Scientific publication of students from the research results of the topic (specify the name of the journal if any) or comments and assessments of the institution that applied the research results (if any) May 19, 2021 Students are mainly responsible for the implementation of the topic (Sign and write full name) The instructor's remarks regarding the scientific contributions of the students who have made the document (the instructor records this section): May 19, 2021 Instructor (Sign and write full name) BANKING ACADEMY INFORMATION ABOUT STUDENTS RESPONSIBILITIES FOR IMPLEMENTATION OF THE TOPIC I STUDENT SUMMARY: Full name: Nguyen Gia Tan Date of birth: June 24, 2000 Birthplace: Ha Noi Student code: 21A4010507 Class: K21CLCC Course: Major: Finance Address: No.18, 88 Lane, Hoang Nhu Tiep Street, Bo De Ward, Long Bien District, Ha Noi Phone No: 0868235837 Email: ntan980@gmail.com II LEARNING PROCESS (student performance from year to now) *First year: Finance Major: Finance Study result: System 10: 7.95/10 System 4: 3.04/4 Summary of results: Good *Second year: Finance Study result: System 10: 7.92/10 System 4: 3.02/4 Summary of results: Good Major: Finance * Third year: Finance Major: Finance Study result: System 10: 8.14/10 System 4: 3.26/4 Summary of results: Very good May 19, 2021 Students are mainly responsible for the implementation of the topic (Sign and write full name) DECLARATION OF AUTHORSHIP We hereby declare that this thesis was carried out by ourselves under the guidance and supervision of PhD Nguyen Thi Le Thanh; and that the work contained and the results in it are true by the author and have not violated research ethics The data and figures presented in this thesis are for analysis, comments, evaluation and are consistent with the reality of Vietnam by our work and have been duly acknowledged in the reference part In addition, other comments, reviews and data used by other authors, and organizations have been acknowledged, and explicitly cited I will take full responsibility for any fraud detected in my thesis Banking Academy is unrelated to any copyright infringement caused on our work (if any) Author Leader ACKNOWLEDGMENT We sincerely thank the instructors and teachers in the Accounting-Auditing Department of Banking Academy for creating the best conditions for us to carry out this research Specifically, we would like to express our sincerest gratitude to the businesses for which the author has removed conditions, surveys and other experts in related fields, who contributed extremely valuable and reliable knowledge, for the author to be able to complete our research Author Leader CONTENTS DECLARATION OF AUTHORSHIP ACKNOWLEDGMENT CONTENTS LIST OF TABLES 10 ABBREVIATIONS 11 INFORMATION RESEARCH RESULTS OF RESEARCH INTRODUCTION 13 CHAPTER LITERATURE REVIEW 16 1.1 Theories on the determinants of the capital structure 16 1.1.1 Model Based on Trade-off theory 16 1.1.1.1 Trade-off hypothesis 16 1.1.1.2 Agency Theory 18 1.1.2 Asymmetric Information 25 1.1.2.1 Interaction of Investment and Capital Structure 25 1.1.2.2 Signaling with Proportion of Debt 30 1.1.2.3 Models Based on Managerial Risk Aversion 32 1.1.3 Summary 34 1.2 The measurements of capital structure 35 1.3 The Determinants of Capital Structure 36 CHAPTER DATA AND METHODOLOGY 42 2.1 Data Source 42 2.2 The Empirical Model 42 CHAPTER RESEARCH RESULT 45 3.1 Descriptive Statistics 45 3.2 Empirical Analysis 49 CHAPTER CONCLUSIONS 62 4.1 Conclusions and discussions 62 4.2 Recommendations 63 4.3 Limitations and future directions 64 LIST OF PUBLISHED PAPERS BY AUTHOR 66 REFERENCES 85 10 LIST OF TABLES Table Table Comparison of Agency Models Based on Manager-Shareholder Conflicts Variables Definitions Table 3.1 Data Description of Variables Table 3.2 Correlation matrix Table 3.3 – 3.14 Regression result and Test result