Financial marketing development and firms' financing choices - Evidence in manufacturing sector on Ho Chi Minh stock exchange (HOSE)
Abstract
Financial market as well as capital structure of firms is always an interesting
idea to discuss and hence catches attention of many researchers. This paper aims to
examine the effects of Financial Market Development on capital structure of
manufacturing sector in Vietnam. A sample of 91 manufacturing firms listed on Ho Chi
Minh Stock Exchange (HOSE) over the period 2006-2013 is chosen. Panel regressions
are carried out to examine the impact of Financial Market development on the firms’
capital structure. The paper found evidence that three over five macroeconomics
variables related to financial market development have significant impact on capital
structure of manufacturing firms in Vietnam including Financial Crises, Interest Lending
Rate and Stock Market Development. Furthermore, capital structure choice of firms in
the sample was also affected by firm-specific characteristics which are Firm Size and
Financial Quality by Z-score model.