The effect of size and growth on leverage : Evidence in the fishery and real estate industry in Vietnam

Abstract

The study analyzes the factors determining the capital structure of the Vietnam

enterprises. The analysis grounds on M&M, the agency theory, trade-off theory and the

pecking order theory. In particular, the study provides a qualitative and quantitative

analysis about relationship between size and leverage, the relationship between growth

and leverage in fishery and real estate industry in HOSE. This analysis bases on

definition of the expected relationships that one might consider between the referred

variables and the total debt ratio. In this regard, the analysis will conduct by means of

considering a survey of 54 companies in Vietnam where a hierarchical regression model

will allow comparison of the hypotheses made.