tailieunhanh - Above-average debt ratio and the relationship with return on equity: The case of the Vietnamese listed seafood enterprises

Above-average debt ratio and the relationship with return on equity: The case of the Vietnamese listed seafood enterprises. Many studies have presented the relationship between the leverage of firms and return on equity (ROE) in order to analyze how significant leverage has influence on the ROE of enterprises. Exploring the data set from financial statements and annual reports of the Vietnamese listed seafood enterprises from 2009 to 2013. | Journal of Economics and Development, , , April 2015, pp. 50-74 ISSN 1859 0020 Above-Average Debt Ratio and the Relationship with Return on Equity: The Case of the Vietnamese Listed Seafood Enterprises Nguyen Thanh Lan National Economics University, Vietnam Email: thanhlan512@ Phan Hong Mai National Economics University, Vietnam Email: hongmaiktqd@ Abstract Many studies have presented the relationship between the leverage of firms and return on equity (ROE) in order to analyze how significant leverage has influence on the ROE of enterprises. Exploring the data set from financial statements and annual reports of the Vietnamese listed seafood enterprises from 2009 to 2013, the paper aims to examine the determinants of these firms having a greater debt ratio than the average of the industry. In addition, the relationship between ROE and a firm’s leverage is analyzed by applying a fixed-effects regression. It can be found that firms having an above-average debt ratio have a lower ROE than their counterparts by . Keywords: Debt ratio; average level; fixed-effects regression; seafood enterprises; Vietnam. Journal of Economics and Development 50 Vol. 17, , April 2015 1. Introduction paper, we measure the probability of firms having higher debt ratios than the average level of the seafood industry during the period of 2009 through 2013. In other words, the determinants for a firm having above-average debt ratios are expected to be thoroughly examined. Theories on capital structure decision-making are also applied in determining the factors which have significant impacts on the debt ratio of each firm, compared to the average of this industry. An additional aspect that we consider is the impact of an above-average debt ratio on the ROE of the Vietnamese listed seafood enterprises. Hence, the main hypothesis of this study is as follows: “There exists a significant relationship between ROE and the debt threshold of a firm if it .

• Ngư nghiệp
• Above average debt ratio
• The relationship with return on equity
• Return on equity
• The case of the Vietnamese
• Listed seafood enterprises
• Summary of Doctoral thesis
• Summary of Doctoral thesis in Economics
• Analyze business efficiency
• Fisheries enterprises
• Business efficiency of businesses