Determinants of capital structure : Evidence from Vietnamese

Abstract

The paper explores the capital structure of Vietnamese listed firms with new data base, which contains 137 companies listed on either Hochiminh Stock Exchange (HOSE) or Hanoi Stock Exchange up to the year 2012. The paper employs dynamic panel model on data of all listed firms (exclude financial firms and banks) during period 2007-2012. The research finds that State control does not affect significantly on firms leverage while previous literature indicate that State control has effect on firms leverage. It is also shows that profitability and firm size are significant factor that affect the capital structure during this period. Furthermore, the results state that Vietnamese enterprises still use short-term debt as the main finance source. In particular, the result shows that there is a significant difference in determinant of long-term debt and short-term debt.