Does capital structure affect firm value in Vietnam?

  • Received November 2, 2020;
    Accepted January 20, 2021;
    Published January 22, 2021
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  • Article Info
    Volume 18 2021, Issue #1, pp. 33-41
  • Cited by
    5 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

This study aims to examine whether the capital structure and several factors have significant influences on firm value in Vietnam. To achieve this objective, 435 non-financial listed companies have been selected from 2012 to 2019 on Vietnamese stock exchanges. Four groups of firms continue to be chosen from the total to investigate the differences in the outcomes among industries. The results altogether using the GMM method show that the impact of capital structure and other control variables on firm value is significant, yet different across industries: capital structure has a significant positive impact on firm value in the food and beverage industry, but has a significant negative effect on the value of the firm in wholesale trade and construction, as well as real estate industry, while has an insignificant influence on enterprise value considering all industries. Apart from the firm size, the impact of other control factors on firm value also indicates mixed results.

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    • Table 1. Descriptive statistics
    • Table 2. Correlation matrix of independent variables
    • Table 3. Empirical results using GMM
    • Formal Analysis
      Tien Dat Dang
    • Investigation
      Tien Dat Dang, Thi Van Trang Do
    • Software
      Tien Dat Dang
    • Supervision
      Tien Dat Dang
    • Validation
      Tien Dat Dang
    • Writing – original draft
      Tien Dat Dang
    • Conceptualization
      Thi Van Trang Do
    • Data curation
      Thi Van Trang Do
    • Funding acquisition
      Thi Van Trang Do
    • Methodology
      Thi Van Trang Do
    • Project administration
      Thi Van Trang Do
    • Writing – review & editing
      Thi Van Trang Do