The impact of corporate governance on capital structure : Evidence from the Vietnamese stock market

Abstract

This paper aims to investigate the impact of corporate governance on capital structure of listed firms on Vietnamese stock exchange. Data of 82 listed companies over the period of 3 years is processed and regressed following models of panel data. Indeed, the research would conduct assumptions tests to define the optimal regression model among Pooled OLS, Fixed Effects Models and Random Effects Model. Besides CG index assessed by IFC corporate governance scorecard project considered as composite CG variable, the corporate governance is represented by five ownership proxies including ownership of insiders, institution shareholders, block shareholders, foreign ownership and corporate shareholding. There is no evidence that CG practice affects sample firms’ capital structure. The result also indicates that banks and lenders pay more attention on firm size rather than corporate governance aspects.