The impact of capital structure on firm performance - A study of food and beverage companies listed on Vietnam stock exchange
Abstract
In this study, the relationship between capital structure and firm performance was researched. The data was collected from 47 food and beverage companies listed in Vietnam stock exchange form 2013 to 2017. There were three variables used as measurement of the performance of each firm (ROE). The ratio Debt to Total Asset (DA), Short term Debt to Total Asset (SDTA) and Total Debt to Total Equity (DE) were used to measure capital structure. Besides, the growth opportunity (GROWTH) and firm size (SIZE) were also used in the model as control variables. As the results, all variables of capital structure have negative effect each of three variables of firm performance. The notable is that this study also illustrated the negative correlation between ROE and capital structure, which was stated as insignificant in many prior researches. Furthermore, the result of study also showed the insignificant effect of growth opportunity and positively association of size on firm performance.