Determinants of capital structure: empirical evidence from Vietnamese listed construction companies
Main Article Content
Abstract
This paper employs a new database containing the market and accounting data (from 2007 to 2013) of more than 100 Vietnamese listed construction companies to describe their capital structure characteristics. As a result, we found that business risk, tangibility and growth also considerably impact on debt-to-capital ratio while size and tax are insignificantly associated with the capital structure of Vietnamese construction firms. In addition, different from other researches in other countries, Vietnamese construction companies tend to have much lower long-term debt.
Article Details
Keywords
capital structure, leverage, listed companies
References
1. Antonios Antoniou, Yilmaz Guney, Krishna Paudyal, 2002, The Determinants of Corporate Debt Maturity Structure, EFA 2003 Annual Conference Paper No. 802; EFMA 2003 Helsinki Meetings
2. Baskin, J. (1989). An Empirical Investigation of the Pecking Order Hypothesis, Financial Management, 1(1), 26-35.
3. Bevan, A.A., and Danbolt, J. (2002) Capital structure and its determinants in the United Kingdom – a decompositional analysis. Applied Financial Economics, 12 (3). pp. 159-170. ISSN 0960-3107
4. Bradley, M., Jarrell, G. A. and Kim, E. H. (1984). On the Existence of Optimal capital
Structure Theory and Evidence, Journal of Finance, 39 (July), 857-878
5. Castanias, R. (1983), «Bankruptcy Risk and Optimal Capital Structure», Journal of Finance, 38, 1617-1635.
6. De Angelo, H. and Masulis, R.W., 1980. Optimal capital structure under corporate and personal taxation. Journal of Financial Economics, 8, pp.3-29.
7. de Jong, A., Kabir, R., Nguyen T.T., 2008. Capital structure around the world: The roles of firm and country-specific determinants. Journal of Banking and Finance, 32, pp.1954-69.
8. Friend, I. and Lang, L.H.P. (1988). An Empirical Test of the Impact of Managerial Self- interest on Corporate Capital Structure. Journal of Finance, 47, 271-281.
9. Huang, G., Song, F.M., 2006. The determinants of capital structure: evidence from China. China Economic Review, 17, pp.14-36.
10. Jensen, M.C. and Meckling, W.H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Capital Structures. Journal of Financial Economics, 3, 305-360.
11. Kayo, k. E. and Kimura, H., “Hierarchical determinants of capital structure”, Journal of Banking & Finance, Vol. 35, 2011
12. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny R., 1998. Law and finance. Journal of Political Economy, 106, pp.1113-55.
13. Michaelas, N., Chittenden, F. and Poutziouris, P. (1999). Financial Policy and Capital Structure Choice in U. K. SMEs: Empirical Evidence from Company Panel Data, Small Business Economics, 12, 113-130.
14. Modigliani, F., Miller, M.H., 1963. Corporate income taxes and the cost of capital: a correction. American Economic Review, 53, pp.433-43.
15. Myers S.C., 1977. Determinants of capital borrowing. Journal of Finance Economics, 5, pp.5147-75.
16. Myers, S.C., Majluf, N., 1984. Corporate financing and investment decisions when firms have information those investors do not have. Journal of Financial Economics, 13, pp.187221.
17. Nguyen T.T, 2008. Capital structure, strategic competition, and governance. ERIM PhD Series, Haveka Publishing House.
18. Pandey, I.M., Chotigeat, T. and Ranjit, M.K., 2000. Capital structure choices in an emerging capital market: the case of Thailand. Management and Change, 4, pp.1-14.
19. Rajan, R. and Zingales, L., “What do we know about capital structure? Some evidence from international data”, Journal of Finance, Vol. 50, 1995, pp. 1421-60.
20. Shah, A. and T. Hijazi. 2004. “The determinants of capital structure of stock exchange-listed non-financial firms in Pakistan, Pakistan Development Review”, Vol. 43, pp. 605-618.
21. Sogorb-Mira, F. (2005). How SME uniqueness affects capital structure: Evidence from a 1994–1998 Spanish data panel. Small Business Economics, 25, 447–457.
22. Thies, C. F. and Klock, M. S. (1992). Determinants of Capital Structure, Review of Financial Economics, 1(2), 40-53.
23. Titman, S. and Wessels, R., 1988. The determinants of capital structure choice. Journal of Finance, 43, pp.1-19.
24. Van der Wijst, N. and Thurik, R. (1993). Determinants of Small Firm Debt Ratios: An Analysis of Retail Panel Data, Small Business Economics, 5, 55-65.
2. Baskin, J. (1989). An Empirical Investigation of the Pecking Order Hypothesis, Financial Management, 1(1), 26-35.
3. Bevan, A.A., and Danbolt, J. (2002) Capital structure and its determinants in the United Kingdom – a decompositional analysis. Applied Financial Economics, 12 (3). pp. 159-170. ISSN 0960-3107
4. Bradley, M., Jarrell, G. A. and Kim, E. H. (1984). On the Existence of Optimal capital
Structure Theory and Evidence, Journal of Finance, 39 (July), 857-878
5. Castanias, R. (1983), «Bankruptcy Risk and Optimal Capital Structure», Journal of Finance, 38, 1617-1635.
6. De Angelo, H. and Masulis, R.W., 1980. Optimal capital structure under corporate and personal taxation. Journal of Financial Economics, 8, pp.3-29.
7. de Jong, A., Kabir, R., Nguyen T.T., 2008. Capital structure around the world: The roles of firm and country-specific determinants. Journal of Banking and Finance, 32, pp.1954-69.
8. Friend, I. and Lang, L.H.P. (1988). An Empirical Test of the Impact of Managerial Self- interest on Corporate Capital Structure. Journal of Finance, 47, 271-281.
9. Huang, G., Song, F.M., 2006. The determinants of capital structure: evidence from China. China Economic Review, 17, pp.14-36.
10. Jensen, M.C. and Meckling, W.H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Capital Structures. Journal of Financial Economics, 3, 305-360.
11. Kayo, k. E. and Kimura, H., “Hierarchical determinants of capital structure”, Journal of Banking & Finance, Vol. 35, 2011
12. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny R., 1998. Law and finance. Journal of Political Economy, 106, pp.1113-55.
13. Michaelas, N., Chittenden, F. and Poutziouris, P. (1999). Financial Policy and Capital Structure Choice in U. K. SMEs: Empirical Evidence from Company Panel Data, Small Business Economics, 12, 113-130.
14. Modigliani, F., Miller, M.H., 1963. Corporate income taxes and the cost of capital: a correction. American Economic Review, 53, pp.433-43.
15. Myers S.C., 1977. Determinants of capital borrowing. Journal of Finance Economics, 5, pp.5147-75.
16. Myers, S.C., Majluf, N., 1984. Corporate financing and investment decisions when firms have information those investors do not have. Journal of Financial Economics, 13, pp.187221.
17. Nguyen T.T, 2008. Capital structure, strategic competition, and governance. ERIM PhD Series, Haveka Publishing House.
18. Pandey, I.M., Chotigeat, T. and Ranjit, M.K., 2000. Capital structure choices in an emerging capital market: the case of Thailand. Management and Change, 4, pp.1-14.
19. Rajan, R. and Zingales, L., “What do we know about capital structure? Some evidence from international data”, Journal of Finance, Vol. 50, 1995, pp. 1421-60.
20. Shah, A. and T. Hijazi. 2004. “The determinants of capital structure of stock exchange-listed non-financial firms in Pakistan, Pakistan Development Review”, Vol. 43, pp. 605-618.
21. Sogorb-Mira, F. (2005). How SME uniqueness affects capital structure: Evidence from a 1994–1998 Spanish data panel. Small Business Economics, 25, 447–457.
22. Thies, C. F. and Klock, M. S. (1992). Determinants of Capital Structure, Review of Financial Economics, 1(2), 40-53.
23. Titman, S. and Wessels, R., 1988. The determinants of capital structure choice. Journal of Finance, 43, pp.1-19.
24. Van der Wijst, N. and Thurik, R. (1993). Determinants of Small Firm Debt Ratios: An Analysis of Retail Panel Data, Small Business Economics, 5, 55-65.