Empirical study on the Determinants of Capital Structure of Manufacturing firm on Ho Chi Minh stock exchange

Abstract

This paper aims to identify the determinants influencing the capital structure of listed manufacturing enterprises on Hochiminh Stock Exchange. Information of 53 listed enterprises over the period of 5 years is processed and regressed to use for Panel data method. Indeed, the research would conduct assumptions tests to define the optimal regression model among Pooled OLS, Fixed Effects Models and Error Components Model. Besides that, the capital structure is represented by three proxies including total debt ratio, short-term debt and long-term debt measure. Empirical result shows the correlation between debt measures and 5 determinants: Firm size, Growth opportunity, Tangibility degree of asset, Profitability and Business risk.