Effects of corporate governance on capital structure - Evidence from listed manufacturing companies on HOSE
Abstract
This study aims to investigate whether capital structure is affected by corporate governance in Vietnamese manufacturing companies. The study applies board size, non-executive director, CEO duality, managerial ownership, and block ownership as corporate governance proxies. Firm size and profitability are used as control variables. The sample data is collected form 62 manufacturing firms listed on HOSE over the 4 years period from 2015 to 2018. By using Fixed Effects Model (FEM) with robust, the results show that there is no statistical evidence about the effect of corporate governance on capital structure of listed manufacturing companies. The findings also demonstrate firm size and profitability affect significantly on capital structure decision.