| dc.description.abstract | In today's dynamic corporate environment, businesses are engaged in a never ending struggle to properly negotiate this challenging terrain. One of the hardest and
most crucial choices that the organization's management must make is the choice of the
capital structure for the company. This decision is critical to maximizing sales and
preserving the company's competitiveness in its specific industry (Abor, 2005). In
today's changing business environment, managers must be willing to take calculated
risks in order to safeguard the long-term viability of the organization (Jensen and
Meckling, 1976). Managers must so thoroughly analyze the cause-and-effect linkages,
develop specialized solutions, and follow a rigorous approach when deciding on the
capital structure of the company. The company may be pushed to the brink of
organizational collapse if this isn't done.
Scholars have long examined the relationship between a company's total
profitability and its debt. On the other hand, these scholars have provided a variety of
viewpoints regarding how debt functions. Some have emphasized the detrimental
consequences of debt on profitability (Abor, 2005), while others have highlighted the
positive effects (Margrates and Psillaki, 2010). Some others have offered a patchy
assortment of results (Weill, 2008). These disparities can be attributed to a variety of
factors, such as the variables under investigation, variations in sample sizes that
encompass a range of countries, companies, industries, and historical eras, and
modifications in the employed technique.
This research endeavor aspires to contribute depth to the ongoing discourse by
investigating how debt shapes the profitability of businesses within the vibrant retail
sector of Vietnam. Diverging from past studies that predominantly focused on
particular industries or individual companies within delimited timeframes, this research
takes a comprehensive standpoint. It delves into a wide array of variables to unearth the
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influence of debt on the profitability of non-financial sector businesses operating within
the Vietnamese retail industry.
By examining how debt affects the profitability of enterprises within Vietnam's
thriving retail sector, this research initiative seeks to add depth to the continuing
discourse. Taking a broad approach, this research departs from previous studies that
mostly concentrated on specific industries or individual companies during short
durations. The study explores a diverse range of factors to determine the impact of debt
on the profitability of non-financial sector enterprises functioning in the Vietnamese
retail sector. | en_US |
