tailieunhanh - Factors influencing capital structure of Vietnam’s real estate enterprises: A move from static to dynamic models

In this study, which investigates the determinants of capital structure of Vietnam’s listed real estate companies, we conduct a comparative analysis of static and dynamic models, finding out several factors affecting the capital structure. | 76!! ! ! Pham Tien Minh & Nguyen Tien Dung / Journal of Economic Development. 22(4), 76-91 ! Factors Influencing Capital Structure of Vietnam’s Real Estate Enterprises: A Move from Static to Dynamic Models PHAM TIEN MINH Vietnam National University, HCMC University of Technology – ptminh@ NGUYEN TIEN DUNG Vietnam National University, HCMC University of Technology – ntdung@ This research is funded by HCMC University of Technology under grant number TQLCN-2014-71. ARTICLE INFO ABSTRACT Article history: In this study, which investigates the determinants of capital structure of Vietnam’s listed real estate companies, we conduct a comparative analysis of static and dynamic models, finding out several factors affecting the capital structure. By applying panel data for 47 listed companies in the real estate domain from 2008 to 2013, we find that static panel models and dynamic estimators provide significantly different results. To finally identify the capital structure determinants, we then employ the system-GMM estimation. The empirical results indicate that the pecking order theory dominates the static trade-off theory as for the Vietnam’s listed real estate companies, which are also found to partially adjust their capital structure toward the target capital structure at a low speed (α = ), implying that these have to face quite large adjustment costs. Received: Jan. 14 2015 Received in revised form: May 15 2015 Accepted: 04 July 2015 Keywords: Capital structure, static model, dynamic model, GMM, real estate, speed of adjustment. ! ! Pham Tien Minh & Nguyen Tien Dung / Journal of Economic Development. 22(4), 76-91 !77! ! 1.! Introduction Recent years have marked a significant shift in the investigation of capital structure, exclusively from either static to dynamic models or basic estimates with strict hypothesis testing to advanced measures in the event of violated hypotheses. Various studies so far conducted in Vietnam have .