| dc.description.abstract | The thesis aims to test for the relation between the capital structure and its determinants of 52 manufacturing firms listed on Ho Chi Minh stock exchange for the periods of five years from 2011 to 2015. The regression analysis proves the significant impact of five variables denoted as profitability, firm size, growth opportunities, earnings volatility and liquidity on the leverage ratio. The results suggest that firm size, growth opportunities, earnings volatility and liquidity are related negatively to the leverage, whereas profitability is positively linked to the leverage ratio. The findings of this study are consistent with the predictions of the trade-off theory and/or pecking order theory and confirm that same factors affect the capital structure of firms in developed countries as identified for firms in Vietnam economy. Corporate managers could rely on those empirical findings to make optimal decisions on firm‟s capital structure.
Keywords: Capital structure, Manufacturing industry, Vietnam, Ho Chi Minh Stock exchange market. | en_US |
