| dc.description.abstract | There are many studies research the relationship between corporate strategy, capital structure and firm performance, but they conduct separately each pair to estimate the operation of company regardless the effect of combination of corporate strategy and capital structure to firm performance in order to give the right decisions for their companies. Which one will help them increase their revenues, which one will not to concentrate and avoid wasting time to unnecessary activities? Recognizing this problem, Tam (2010) investigates these relationship with empirical of all companies listed in Vietnam. However, it finds that he is the first Vietnamese considers this impact on all industries and he has just collected data in one year and explored the issue. If this topic is examined by collecting data in six years, the result will change or not? Thus, this study is delved in order to test the implication and reliability of the co – alignment effect
for firms to base on. In this research, we have analyzed the relationship between firm growth, liquidity, capital structure and firm performance individually as well
as collectively using a panel data analysis for a sample of 187 Vietnamese companies listed in HoChiMinh Stock Exchange (HOSE) at least from 2009 during the period of 2006 to 2011. Using fixed – effects regression model, this study finds that there are no relationship between liquidity and performance of firm. Sale growth only affects positively significant firm performance in small firm size group, and the rest are not. On the other hand, sale growth becomes unimportant factor during crisis since 2007. Potential growth should be carefully analyzed. It will reflect the firm performance in real when being put in the difficult situation. Debt will be in the inverse outcome. More debts, more risks the company has to suffer during crisis from 2007. Moreover, this study suggests that managers/entrepreneurs or investor should ignore the influence of firm liquidity when making the financial investment decision. In addition, the effectiveness of
firm size to firm performance is differently and inconsistently. | en_US |
