Trang 1 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING --- GRADUATION DISSERTATION CAPITAL STRUCTURE DETERMINANTS OF LISTED COMPANIES: CASE STUDY ON FOOD AND Tra
THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING - GRADUATION DISSERTATION CAPITAL STRUCTURE DETERMINANTS OF LISTED COMPANIES: CASE STUDY ON FOOD AND BEVERAGE COMPANIES ON THE VIETNAM STOCK EXCHANGE MAJOR: FINANCE Prepared by Student’s full name: Nguyen Huynh Tra Student’s ID number: 030136200658 Class: DH35TC02 Dissertation’s supervisor: Vo Thien Trang MSc THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING - GRADUATION DISSERTATION CAPITAL STRUCTURE DETERMINANTS OF LISTED COMPANIES: CASE STUDY ON FOOD AND BEVERAGE COMPANIES ON THE VIETNAM STOCK EXCHANGE MAJOR: FINANCE Prepared by Student’s full name: Nguyen Huynh Tra Student’s ID number: 030136200658 Class: DH35TC02 Dissertation’s supervisor: Vo Thien Trang MSc i ABSTRACT Capital structure has been one of the most concerns and has previously been studied However, because each research article is carried out in different countries and continents, with distinct dates, and in different professions and sectors, the results of each study will be different According to prior studies, the author discovered that the research issue of an individual industry’s capital structure in Vietnam has not received adequate attention This is still an interesting and outdated topic The author chose this research article to learn more deeply about the determinants influencing to financial structure of F&B firms in an emerging economy in the period 2009-2022, with data collected from 30 listed Food and Beverage firms from Vietnam Stock Exchange and macro variables from official websites However, the study approach Pooled Ordinary Least Square (POLS), Fixed Effects Model (FEM), and Random Effects Model (REM), then applies Feasible Generalized Least Squares (FGLS) to overcome the phenomenon of heteroskedasticity number of changes and autocorrelation The final results show that inflation rate (INF) and growth rate (GTH) have a positive correlation with financial leverage; while profitability rate (PROF), tax rate (TAX), and liquidity rate (LIQ) have a negative correlation with financial leverage Keyword: capital structure, financial leverage, F&B firms ii ABSTRACT (VIETNAMESE) Cấu trúc vốn đã và đang là một trong những vấn đề được quan tâm nghiên cứu Tuy nhiên, vì mỗi bài nghiên cứu được tiến hành ở các quốc gia và lục địa khác nhau, vào các mốc thời gian khác nhau, trong các ngành nghề và lĩnh vực riêng biệt, nên kết quả của mỗi nghiên cứu sẽ khác nhau Theo các nghiên cứu đã được đưa ra, các tác giả phát hiện rằng nghiên cứu về cấu trúc vốn của một ngành công nghiệp cụ thể tại Việt Nam chưa được nhận được sự chú ý đáng kể, tuy nhiên cấu trúc vốn vẫn là một chủ đề cần được khai thác nhiều hơn Tác giả đã chọn đề tài này để tìm hiểu sâu hơn về những yếu tố ảnh hưởng đến cấu trúc tài chính của các công ty F&B trong một nền kinh tế mới nổi trong giai đoạn 2009-2022, với dữ liệu được thu thập từ 30 công ty F&B niêm yết trên Sở giao dịch chứng khoán Việt Nam và dữ liệu về các biến vĩ mô từ các trang web của chính phủ Nghiên cứu này sử dụng các phương pháp Pooled Ordinary Least Square (POLS), Fixed Effects Model (FEM), Random Effects Model (REM), sau đó áp dụng Feasible Generalized Least Squares (FGLS) để khắc phục hiện tượng tự tương quan và phương sai sai số thay đổi Kết quả cuối cùng đưa ra cho thấy tỷ lệ lạm phát (INF), tỷ lệ tăng trưởng (GTH) có mối tương quan cùng chiều với đòn bẩy tài chính, trong khi tỷ suất lợi nhuận (PROF) tỷ lệ thuế (TAX) và tỷ lệ thanh khoản (LIQ) có mối tương quan ngược chiều với đòn bẩy tài chính Từ khóa: Cấu trúc vốn, đòn bẩy tài chính, doanh nghiệp F&B iii DECLARATION My name is: Nguyen Huynh Tra, Student of class: DH36TC02, Faculty of Finance, Ho Chi Minh University Of Banking, Student’s ID number: 030136200658 I declare that my graduation dissertation on the topic: “Capital Structure Determinants Of Listed Companies: Case Study On Food And Beverage Companies On The Vietnam Stock Exchange” is the result of my own research during my studies at Ho Chi Minh University Of Banking under the enthusiastic guidance of my academic advisor, MSc Vo Thien Trang The research and analysis results are independent, do not copy any documents and have not been published in any journal, nor have they appeared in any studies The data and sources cited in the study are clearly shown in the reference The author takes full responsibility for my honorable pledge Author NGUYEN HUYNH TRA iv PREFACE First of all, I would like to send my sincere thanks to all teachers at Ho Chi Minh University of Banking has created favorable conditions for me to participate in writing my graduation dissertation this time I also send my thanks to all the teachers of the Faculty of Finance - Ho Chi Minh University Of Banking who have dedicatedly taught and imparted valuable knowledge to me over the past time In particular, I would like to express my sincere thanks and gratitude to the lecturer MSc.Vo Thien Trang, who wholeheartedly gave me feedback and direction during the process of completing this dissertation In the process of completing the dissertation, I will certainly not avoid shortcomings Therefore, I look forward to receiving your understanding, suggestions and further instructions Finally, I wish all teachers good health and success in their careers in life Author NGUYEN HUYNH TRA v TABLE OF CONTENT LIST OF ABBREVIATIONS vii LIST OF TABLES, FIGURES viii CHAPTER 1 INTRODUCTION .1 1.1 Introduction and background: 1 1.2 Research gap identification and new contributions 4 1.3 Research objectives: 5 1.4 Research question: 6 1.5 Scope of the study: 6 1.6 Research data and methodology 6 1.6.1 Research data 6 1.6.2 Methodology 7 1.7 Research structure: 8 CHAPTER 2 LITERATURE REVIEW .10 2.1 Overview of Capital structure: 10 2.1.1 The definition of capital structure: 10 2.1.2 The definition and measurement of capital structure: 11 2.2 Optimal capital structure: 14 2.3 Capital structure theory 15 2.3.1 Modigliani and Miller's capital structure theory (M&M Theory) 15 2.3.2 Trade-off theory 17 2.3.3 The Pecking Order Theory 18 2.3.4 Market-timing theory 18 2.4 Summary of previous researches: 19 2.4.1 International researches: 19 2.4.2 Domestic researches 22 CHAPTER 3 RESEARCH METHODOLOGY 25 3.1 Research process 25 3.2 Research data: 26 3.3 Methods of measuring variables 27 3.3.1 Dependent variable: 27 3.3.2 Undependent variable: 27 3.4 Research methods and model 30 3.4 Research hypothesis: 33 CHAPTER 4: DATA ANALYSIS .39 vi 4.1 Descriptive statistics of variables: 39 4.2 Correlation matrix 41 4.3 Variance inflation factor test 43 4.4 Results of model regression .44 4.5 Test for optimal estimation method 45 4.6 Test for defects in the model 47 4.6.1 Autocorrelation test 47 4.6.2 Heteroskedasticity test .48 4.6.3 Feasible Generalized Least Squares (FGLS) method 48 CHAPTER 5 CONCLUSION AND IMPLICATION 54 5.1 Conclusion: 54 5.2 Research implications: 56 5.2.1 For the government and state management agencies: 56 5.2.2 For the corporate administrators 57 5.3 Contribution of the research topic 58 5.4 Limitations 58 REFERENCE LIST 60 APPENDIX 1 67 APPENDIX 2 70 FEM vii FGLS GDP LIST OF ABBREVIATIONS INF Fixed Effects Model REM Feasible Generalized Least Squares VIF Gross Domestic Product D/E Inflation F&B Random Effects Model Variance Inflation Factor Debt to Equity Food and beverage viii LIST OF TABLES, FIGURES Figure 3.1: Description of the research processs 25 Table 4.1: Descriptive statistics of variables……………………………………….39 Table 4.2: Correlation coefficient between variables of model 42 Table 4.3: Variance inflation factor 43 Table 4.4: Regression results of Pooled OLS, FEM, REM regression models 44 Table 4.5: F-test 46 Table 4.6: Breusch-Pagan / Cook- Weisberg test .46 Table 4.7: Hausman test 47 Table 4.8: Serial Correlation and Heteroskedasticity tests .47 Table 4.9: Regression results of FEM, REM and FGLS regression models 49