Comparative Analysis The Effect Factors Of Capital Structure Of Listed Companies Between China And Vietnam

On January1,2010, regional free trade China-Asean was officially established, including Vietnam. Vietnam and China are both developing countries and also two large agricultural nations. From2010to2012, agricultural and processing sectors’s export turnover between Vietnam and China was:2010(17.79%),2011(16,078%),2012(24.56), export tends to go up sharply. In recent years, the preferential policies of Vietnam Government has helped the food processing sector develop rapidly; particularly, Vietnam started implementing institutional policies equitization with state-owned enterprises, therefore, the food processing industry grows stronger. According to the list of sub-sectors, the manufacturing sector has created19small industries. According to statistics from HNX and HOSE, ofood processing sector has the largest number of companies, accounting for32%of share of the entire manufacturing sector.The development of each company always comes with the need to attract capital, capital structure showing the relationship of the capital resources, the factors influencing the attraction of such channels to attract capital, capital attraction method, which attracts capital and capital risk. The company wants to achieve the highest value only when the optimal capital structure, the value of the new company can reach the highest level. Therefore, the authors chose comparing factors affecting the capital structure of listed companies in the food processing industry in Vietnam and China.The thesis consists of five chapters of which chapter3,4,5are important chapter Chapter1presents the background and significance of research, comparison and synthesis of historical research and the research of factors that affect the capital structure of Vietnam, China and other countries,in order to find out the research method, research content, and new points of the thesis. Chapter2:provides a definition of capital structure, synthesis and presentation of the key arguments and reasoning that can be learned. Chapter3:through practical examples, real data and the theoretical practical analysis as well as qualitative comparative similarities and differences of these factors affect the capital structure of the company listed in the food processing industry of the two countries, there are2categories:micro and macroeconomic factors. Chapter4:Based on the analysis, making assumptions, and selecting88companies listed in the Chinese food processing industry,72companies listed in Vietnam food processing industry as the research object, using multivariate regression analysis of SPSS software, conducting empirical analysis. The study results show that company size, growth potential, business efficiency, the ability to resist risks, liquidity and external debt tax shield affects a company’s capital structure significantly. Chapter5summarizes the research findings of the thesis, sets out policy recommendations and complete capital structure in the Vietnam and Chinese food processing industry, gives points for future research directions.