Factors affecting the capital structure of Vietnamese enterprises

CHAPTER 5: CONCLUSION

Chapter five presents the research results achieved in the thesis, the limitations of the thesis and future research directions.

5.1. The research results achieved in the thesis

The study used three types of panel data models (pooled model, fixed effects model and random effects model) to test the factors affecting the capital structure of 214 Vietnamese non-financial joint stock companies listed on HOSE during the period 2009 - 2012. However, only the fixed effects model is suitable for this test.

The results of the study show that the firm size factor (SIZE) is positively correlated with the total debt ratio and the short-term debt ratio, but does not affect the long-term debt ratio. The profitability factor (PRO) is negatively correlated with all three debt ratios. The tangible assets factor (TANG) is not related to the total debt ratio, but is negatively correlated with the short-term debt ratio and positively correlated with the long-term debt ratio. The growth opportunity factor (GROW) is positively correlated with the total debt ratio and the short-term debt ratio, but does not affect the long-term debt ratio. The liquidity factor (LIQ) is negatively correlated with the total debt ratio and the short-term debt ratio, but does not affect the long-term debt ratio. The business risk factor (RISK) is not related to all three debt ratios.

From the research results, we can see that the capital structure decisions of large-scale companies are consistent with the trade-off theory of capital structure. On the contrary, the capital structure decisions of companies with high profits, high growth opportunities, and high liquidity are consistent with the pecking order theory. In addition,

The research results also show that financial managers of Vietnamese joint stock companies still do not pay much attention to financial risk management.

5.2. Limitations of the thesis and future research directions

Due to limited research time, I only collected data from financial reports of 214 Vietnamese non-financial joint stock companies listed on the Ho Chi Minh City Stock Exchange (HOSE) during the period 2009 - 2012. To make the research results more accurate, further studies can collect data from all companies listed on the two exchanges HOSE and HNX.

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APPENDIX

APPENDIX 1: RESEARCH RESULTS ACCORDING TO THE GENERATED MODEL (PM)

PL-1A: Results of analysis of factors affecting total debt ratio (TDR)

Dependent Variable: TDR Method: Panel Least Squares Date: 03/26/13 Time: 14:22 Sample: 1 856

Periods included: 4

Cross-sections included: 214

Total panel (balanced) observations: 856

Variable

coefficient	Std. Error	t-Statistic	Prob.
SIZE	0.036003	0.003917	9.190800	0.0000
PRO	-1.275561	0.064203	-19.86771	0.0000
TANG	-0.100259	0.024775	-4.046834	0.0001
GROW	0.067060	0.011568	5.796816	0.0000
LIQ	-0.024767	0.002007	-12.34268	0.0000
RISK	0.019605	0.026291	0.745698	0.4561
C	0.177799	0.054635	3.254276	0.0012
R-squared	0.489570	Mean dependent var		0.484547
Adjusted R-squared	0.485963	SD dependent var		0.213287
SE of regression	0.152919	Akaike info criterion		-0.909672
Sum squared residue	19.85321	Schwarz criterion		-0.870810
Log likelihood	396.3397	Hannan-Quinn critic.		-0.894791
F-statistic	135.7173	Durbin-Watson statistics		0.374280
Prob(F-statistic)	0.000000

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Source: Data calculated using Eviews software.

Factors affecting the capital structure of Vietnamese enterprises - 7

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