| dc.description.abstract | The primary focus of this analysis is the influence of debt financing on the
businesses performance. Using panel data from the Vietnam Stock Exchange from
2018 to 2022, this research analyzes the effect between capital structure and
performance of Vietnamese enterprises. Firm performance may be evaluated using
return on equity and return on assets, while capital structure can be shown using the
short-term debt to assets, long-term debt to assets, and total debt to assets ratios. The
study conducted with five control variables such as growth rate, firm size, tangibility,
board size, and board independence. This concluded the results by judging capital
structure impacts and corporate governance on the firm success. The poorer firm
performance, the greater share of debt capital structure has. The findings are in line
with the pecking order hypothesis, however, they go against their expectations about
the trade-off theory. The paper's conclusions will help financial managers comprehend
the relevance of capital structure and will help them maximize business performance.
This study builds on past research by examining corporate governance issues that
influence the link between capital structure and business performance. By evaluating
the implications of capital structure and corporate governance on business
performance, the results were evaluated. The performance of firm is inversely
correlated with ratio of debt to capital, and vice versa. These results go against the
pecking order theory's tenets while supporting the forecasts of the trade-off theory.
Business executives possibly appreciate the significance of capital structure according
to the paper's results, which will also help them improve the performance of their
companies. By analyzing corporate governance elements that influence the correlation
between financial management and company success, this paper builds on the findings
of earlier studies. | en_US |
