Relationship between capital structure and firm profitability : an empirical study of Vietnamese listed companies | |
| Author | Phan Cam Ly |
| Call Number | AIT Proj. no.SM-08-15 |
| Subject(s) | Capital market--Vietnam Stock exchanges--Vietnam |
| Note | A project submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | |
| Abstract | This research aims at studying the relationship between capital structure and performance of listed companies in Vietnam’s two stock exchanges using annual data of 182 listed companies for 2006. Besides we also attempt to find out distinct characteristics of capital structure of Vietnamese listed companies and test what modern financial theories are relevant to Vietnamese situation. We have reached three major findings. First, we find that the leverage is negatively related to companies’ performance, represented by Tobin’s Q and return on assets. Second, Vietnamese listed companies’ capital structure have followed a “new” pecking order and this choice of capital structure implies the immaturity of capital markets in Vietnam. Lastly, neither trade-off nor pecking order theory may explain capital structure in Vietnam which different to common structure in developed countries. |
| Year | 2008 |
| Corresponding Series Added Entry | |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Donyaprueth Krairit |
| Examination Committee(s) | Winai Wongsurawat |
| Scholarship Donor(s) | Government of France – Asian Institute of Technology Fellowship |
| Degree | Project (M.B.A.) - Asian Institute of Technology, 2008 |