Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam

Le Trung Thanh; Tran Dinh Van

doi:doi:10.11648/j.jbed.20220701.12

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Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam

Le Trung Thanh, Tran Dinh Van

Published in Journal of Business and Economic Development (Volume 7, Issue 1)

Received: 2 January 2022 Accepted: 18 January 2022 Published: 24 January 2022

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Abstract

Information of capital structure and changes in capital structure plays an important role in corporate financial management. Many researches have shown that the information about changes in capital structure is meaningful and reflects firms' financial position in many aspects. Therefore, studying factors that affect the fast or slow change of firms' capital structure is also meaningful. Based on results of previous researches on the capital structure of enterprises and some proposals for researching impact of some factors on firms’ capital structure change, a regression model including the dependent variable and the 8 independent variables were selected. Data of 174 listed firms in Vietnam and other related data for the period 2015 - 2020 were collected to conduct an empirical research. Our research's aim to clarify the impact of factors including firm size, revenue, asset turnover, ROA, ROE, debt ratio, firm age and GDP growth on the change speed of capital structure of listed firms in Vietnam. Results of the regression analysis show a positive relationship between firm size, asset turnover, debt ratio, ROE and firm age with rapid or slow change of firms’ capital structure, while firms’ revenue has a negative relationship with this change speed. Implications the research's results, limitations and future research directions are discussed.

Published in	Journal of Business and Economic Development (Volume 7, Issue 1)
DOI	10.11648/j.jbed.20220701.12
Page(s)	11-17
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Capital Structure, Change Speed, Impact Factor

References

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[3]	Cook, D. O., & Tang, T. (2010). Macroeconomic conditions and capital structure adjustment speed. Journal of corporate finance, 16 (1), 73-87.
[4]	Dang, N. H. (2015). Financial Deteminants of Firms’ performance: Evidence from selected firms on Vietnam Stock Exchange Market. Journal of Science & Technology - Hanoi University of Industry, 29 (2015), 84-89.
[5]	DeAngelo, H., & Roll, R. (2015). How stable are corporate capital structures?. The Journal of Finance, 70 (1), 373-418.
[6]	Duong T. M. (2017). Research on the theory of corporate performance of enterprises. Journal of Finance (Vietnam), 665, 48-50.
[7]	Financial Statements of 174 enterprises listed on Vietnam Security Market, from 2015 to 2020.
[8]	Hoang, T. S. (2021). Effect of ownership structure on the performance of the listed companies on Vietnam’s stock market. Journal of Finance, 757, 30-32.
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[10]	Mai, Y., Meng, L., & Ye, Z. (2017). Regional variation in the capital structure adjustment speed of listed firms: Evidence from China. Economic Modelling, 64, 288–294.
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[14]	Oino, I., & Ukaegbu, B. (2015). The impact of profitability on capital structure and speed of adjustment: An empirical examination of selected firms in Nigerian Stock Exchange. Research in International Business and Finance, 35, 111-121.
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APA Style

Le Trung Thanh, Tran Dinh Van. (2022). Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam. Journal of Business and Economic Development, 7(1), 11-17. https://doi.org/10.11648/j.jbed.20220701.12

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ACS Style

Le Trung Thanh; Tran Dinh Van. Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam. J. Bus. Econ. Dev. 2022, 7(1), 11-17. doi: 10.11648/j.jbed.20220701.12

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AMA Style

Le Trung Thanh, Tran Dinh Van. Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam. J Bus Econ Dev. 2022;7(1):11-17. doi: 10.11648/j.jbed.20220701.12

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@article{10.11648/j.jbed.20220701.12,
  author = {Le Trung Thanh and Tran Dinh Van},
  title = {Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam},
  journal = {Journal of Business and Economic Development},
  volume = {7},
  number = {1},
  pages = {11-17},
  doi = {10.11648/j.jbed.20220701.12},
  url = {https://doi.org/10.11648/j.jbed.20220701.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20220701.12},
  abstract = {Information of capital structure and changes in capital structure plays an important role in corporate financial management. Many researches have shown that the information about changes in capital structure is meaningful and reflects firms' financial position in many aspects. Therefore, studying factors that affect the fast or slow change of firms' capital structure is also meaningful. Based on results of previous researches on the capital structure of enterprises and some proposals for researching impact of some factors on firms’ capital structure change, a regression model including the dependent variable and the 8 independent variables were selected. Data of 174 listed firms in Vietnam and other related data for the period 2015 - 2020 were collected to conduct an empirical research. Our research's aim to clarify the impact of factors including firm size, revenue, asset turnover, ROA, ROE, debt ratio, firm age and GDP growth on the change speed of capital structure of listed firms in Vietnam. Results of the regression analysis show a positive relationship between firm size, asset turnover, debt ratio, ROE and firm age with rapid or slow change of firms’ capital structure, while firms’ revenue has a negative relationship with this change speed. Implications the research's results, limitations and future research directions are discussed.},
 year = {2022}
}

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TY  - JOUR
T1  - Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam
AU  - Le Trung Thanh
AU  - Tran Dinh Van
Y1  - 2022/01/24
PY  - 2022
N1  - https://doi.org/10.11648/j.jbed.20220701.12
DO  - 10.11648/j.jbed.20220701.12
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 11
EP  - 17
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20220701.12
AB  - Information of capital structure and changes in capital structure plays an important role in corporate financial management. Many researches have shown that the information about changes in capital structure is meaningful and reflects firms' financial position in many aspects. Therefore, studying factors that affect the fast or slow change of firms' capital structure is also meaningful. Based on results of previous researches on the capital structure of enterprises and some proposals for researching impact of some factors on firms’ capital structure change, a regression model including the dependent variable and the 8 independent variables were selected. Data of 174 listed firms in Vietnam and other related data for the period 2015 - 2020 were collected to conduct an empirical research. Our research's aim to clarify the impact of factors including firm size, revenue, asset turnover, ROA, ROE, debt ratio, firm age and GDP growth on the change speed of capital structure of listed firms in Vietnam. Results of the regression analysis show a positive relationship between firm size, asset turnover, debt ratio, ROE and firm age with rapid or slow change of firms’ capital structure, while firms’ revenue has a negative relationship with this change speed. Implications the research's results, limitations and future research directions are discussed.
VL  - 7
IS  - 1
ER  -

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Author Information

Le Trung Thanh

Office of Academic Affairs, VNU University of Economics and Business, Hanoi, Vietnam
Tran Dinh Van

Faculty of Finance and Banking, Trade Union University, Hanoi, Vietnam

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APA Style

Le Trung Thanh, Tran Dinh Van. (2022). Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam. Journal of Business and Economic Development, 7(1), 11-17. https://doi.org/10.11648/j.jbed.20220701.12

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ACS Style

Le Trung Thanh; Tran Dinh Van. Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam. J. Bus. Econ. Dev. 2022, 7(1), 11-17. doi: 10.11648/j.jbed.20220701.12

Copy | Download

AMA Style

Le Trung Thanh, Tran Dinh Van. Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam. J Bus Econ Dev. 2022;7(1):11-17. doi: 10.11648/j.jbed.20220701.12

Copy | Download

@article{10.11648/j.jbed.20220701.12,
  author = {Le Trung Thanh and Tran Dinh Van},
  title = {Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam},
  journal = {Journal of Business and Economic Development},
  volume = {7},
  number = {1},
  pages = {11-17},
  doi = {10.11648/j.jbed.20220701.12},
  url = {https://doi.org/10.11648/j.jbed.20220701.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20220701.12},
  abstract = {Information of capital structure and changes in capital structure plays an important role in corporate financial management. Many researches have shown that the information about changes in capital structure is meaningful and reflects firms' financial position in many aspects. Therefore, studying factors that affect the fast or slow change of firms' capital structure is also meaningful. Based on results of previous researches on the capital structure of enterprises and some proposals for researching impact of some factors on firms’ capital structure change, a regression model including the dependent variable and the 8 independent variables were selected. Data of 174 listed firms in Vietnam and other related data for the period 2015 - 2020 were collected to conduct an empirical research. Our research's aim to clarify the impact of factors including firm size, revenue, asset turnover, ROA, ROE, debt ratio, firm age and GDP growth on the change speed of capital structure of listed firms in Vietnam. Results of the regression analysis show a positive relationship between firm size, asset turnover, debt ratio, ROE and firm age with rapid or slow change of firms’ capital structure, while firms’ revenue has a negative relationship with this change speed. Implications the research's results, limitations and future research directions are discussed.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam
AU  - Le Trung Thanh
AU  - Tran Dinh Van
Y1  - 2022/01/24
PY  - 2022
N1  - https://doi.org/10.11648/j.jbed.20220701.12
DO  - 10.11648/j.jbed.20220701.12
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 11
EP  - 17
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20220701.12
AB  - Information of capital structure and changes in capital structure plays an important role in corporate financial management. Many researches have shown that the information about changes in capital structure is meaningful and reflects firms' financial position in many aspects. Therefore, studying factors that affect the fast or slow change of firms' capital structure is also meaningful. Based on results of previous researches on the capital structure of enterprises and some proposals for researching impact of some factors on firms’ capital structure change, a regression model including the dependent variable and the 8 independent variables were selected. Data of 174 listed firms in Vietnam and other related data for the period 2015 - 2020 were collected to conduct an empirical research. Our research's aim to clarify the impact of factors including firm size, revenue, asset turnover, ROA, ROE, debt ratio, firm age and GDP growth on the change speed of capital structure of listed firms in Vietnam. Results of the regression analysis show a positive relationship between firm size, asset turnover, debt ratio, ROE and firm age with rapid or slow change of firms’ capital structure, while firms’ revenue has a negative relationship with this change speed. Implications the research's results, limitations and future research directions are discussed.
VL  - 7
IS  - 1
ER  -

Copy | Download