tailieunhanh - Capital structure and firm performance of non-financial listed companies: Cross-sector empirical evidences from Vietnam

This paper examines the relationship between capital structure and profitability of non-financial companies listed on Vietnam's stock market. The panel data is extracted from financial statements of 488 listed companies between 2013 and 2018. | Capital structure and firm performance of non-financial listed companies Cross-sector empirical evidences from Vietnam Accounting 6 2020 137 150 Contents lists available at GrowingScience Accounting homepage ac Capital structure and firm performance of non-financial listed companies Cross-sector empirical evidences from Vietnam Thanh Hieu Nguyena and Huu Anh Nguyena aNational Economics University Vietnam CHRONICLE ABSTRACT Article history This paper examines the relationship between capital structure and profitability of non-financial companies listed Received October 12 2019 on Vietnam s stock market. The panel data is extracted from financial statements of 488 listed companies between Received in revised format 2013 and 2018. Capital structure discussed is represented by the ratios of short-term liabilities long-term liabilities November 14 2019 and total liabilities to total assets and profitability is measured by Return on Equity ROE Return on Assets Accepted November 16 2019 ROA and Earnings per share EPS . Firm size growth rate liquidity ratio of fixed assets to total assets are control Available online variables in the study. The Generalized Least Square GLS is applied to different models including ROE ROA November 16 2019 and EPS Model and tests of autocorrelation multicollinearity and heteroskedasticity are run to confirm the Keywords relationship between capital structure and business performance. The results show that the capital structure of Assets Vietnamese listed non-financial companies is negatively related to their performance. Taking industrial product Debt sectors as the preference sectors the results show that pharmaceutical and medical the consumer goods and the Generalized least square public utility industries had a higher relationship between capital structure and firm s performance via ROE ROA Profitability EPS than industrial product sectors. These evidences are useful new insights to investors business .