CAPITAL STRUCTURE DECISIONS AND FIRM PERFORMANCE OF VIETNAMESE SOES
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 11
Abstract
This paper examines relationships between capital structure decisions, firm performance, and Vietnamese state-owned enterprises (SOEs). Capital structure decisions are considered by short- and long-term debts respectively. We consider 1,580 firm-quarter observations of Vietnamese non-financial listed firms during 2007?2011 by applying panel data regression. Our results show that short-term capital structures decisions are found to be significantly negative associated with accounting-based firm performance but long-term capital structures decisions are positively related to market-based firm performance. Additionally, due to socialist market economy reforms, we further show that SOEs are less dominant influence in firm performance. We also find no effects of taxation on firm performance after a series of deregulation of taxation. Finally, 2008 financial crisis event changes relations between capital structure decisions and firm performance of Vietnamese SOEs. Therefore, the Vietnamese experience offers an opportunity to gain new insight.
Authors and Affiliations
Fu-Min Chang| Department of Finance, Chaoyang University of Technology, Taiwan, Yale Wang| Department of Finance, Chaoyang University of Technology, Taiwan, Nicholas Rueilin Lee*| Department of Finance, Chaoyang University of Technology, Taiwan, Duong Thu La| Department of Finance, Chaoyang University of Technology, Taiwan
Keywords
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