Asset liquidity & capital structure - A study of listed companies on Ho Chi Minh stock exchange
Abstract
The paper aim to examine the impacts of asset liquidity on capital structure. We use
the daily data set ranging from Jan 2012 to Dec 2016. Employed a detail data set of firm listed on
HOSE, this paper suggests a model to identify how optimal leverage is increased by asset
liquidity. Our results from the analysis indicate that there is a strong positive relationship
between asset liquidity and capital structure.