Research On The Determinants Of Capital Structure In Vietnamese Enterprises

The theory of the capital structure is the hot point of the financial management and the financial economics research. The Capital structure will not only affect the company’s performance and market value, but also has a significant impact on the governance structure of the company, as well as controls the core competitiveness of the company. Although western scholars widely researched on the factors which made the capital structure, because of the complicated characteristics of the real economy and the characteristics of each country’s economy, the result of the research was not absolutely exact. The research pointed out that the Vietnamese companies haven’t paid a lot of attention to develop appropriate capital structure which decides the survival and the development of the business. According to the global trend of economic integration in the world, establishing an optimal capital structure is the imperative problem which helps Vietnamese companies be able to get along with the world economy. However, to establish an optimal capital structure the entrepreneurs have to know what their statement are, otherwise, they also need to know the impact of elements of their capital structure. The study used the data of the listed companies on the Ho Chi Minh Stock Exchange (HOSE) to analyze the factors which affect the capital structure.The main content includes five parts. The first part is the introduction. It mainly introduces the background, the theoretical review, basic framework, the research methods, the research points and the limit of this research. The second part is about analyzing the theory:the factors affect the capital structure of the Vietnamese companies. Beside that it also shows the notion of the capital structure. The third part is the simple introduction of the statement of the Vietnam stock market and the capital structure of the listed companies on the Vietnam stock market. The fourth part is the substantial content of this paper. Firstly, the research presents the research design which includes the choice of variables and the research theoretic. Otherwise, it also introduces the databases, the selected samples, the research methods and the modern building. Then, the research uses two methods-the qualitative and the quantitative to analyze the factors which affect to the capital structure of the companies. The study uses the qualitative to analyze the macroeconomic factors, the industry feature and the enterprising age, and uses the quantitative to analyze the profitability, the size of the firm, the tangibility, the non-debt tax shield, the grown ability. For these factors, the thesis uses the econometric model which runs on the Eviews6software to analyze. This analysis includes two parts. The first part is analyzing the effect of each factor to the capital structure. The second part is about the combine effect of the five factors. Finally, with each result of the analysis, the research also points out the comments and the causes. In the fifth part the thesis not only makes the final conclusion, but also gives some suggestions about improving the capital structure in the listed companies. The basic conclusion has been gotten through the research of this paper is:the macroeconomic, the industry feature, the enterprising age, the size of firm, the profitability, the tangibility and the grown ability are the main factors impact to the capital structure of the Vietnam companies. Among, the macroeconomic and the industry feature have strong impact. The enterprising age, the profitability and the grown abilitiy have the negative relationship with the capital structure. However, the size of firm and the tangible assets positively relates to leverage. Although the non-debt tax shield and leverage have positive relationship, it doesn’t have a large effect to the capital structure of the Vietnam companies. The thesis hopes that it can improve the entrepreneurs of awareness about the importance of the capital structure and the factors effect, so can help the Vietnamese entrepreneurs build the optimal capital structure.