The relationship between managerial ownership and financial leverage of listed firms in Vietnam - Evidence from Ho Chi Minh stock exchange
Abstract
The target of this study is to examine the relationship between managerial ownership and financial leverage in the context of Vietnam listed firms on Ho Chi Minh Stock Exchange over the four year course from 2014 to 2017. The financial leverage ratio (FLR) of companies is investigated in correlation to managerial ownership (MO1, MO2, MO3), return on asset (ROA), sale growth (SGT), asset growth (AGT), firm size (SIZE). The research use fixed effect and random effect model with robust standard errors to evaluate how the independent variables effect on the dependent variable. The recorded results point out that managerial ownership has not any relation with financial leverage over the given period. Sale growth and firm size have significant relationships with financial leverage in three models. The rest of three variables, including managerial ownership, asset growth, return on asset, are found to be insignificant reaction with the financial leverage ratio of selected firms on Ho Chi Minh Stock Exchange.
Keywords: Managerial ownership, financial leverage, Ho Chi Minh Stock
Exchange.