tailieunhanh - Human capital, capital structure choice and firm profitability in developing countries: An empirical study in Vietnam

The paper aims to examine the impact of human capital, capital structure choice and firm profitability of 48,673 Vietnamese construction firms in 2016. | Human capital capital structure choice and firm profitability in developing countries An empirical study in Vietnam Accounting 6 2020 127 136 Contents lists available at GrowingScience Accounting homepage ac Human capital capital structure choice and firm profitability in developing countries An empirical study in Vietnam Van Chien Nguyena aFaculty of Economics Thu Dau Mot University Binh Duong Vietnam CHRONICLE ABSTRACT Article history The paper aims to examine the impact of human capital capital structure choice and firm profitability of 48 673 Received October 14 2019 Vietnamese construction firms in 2016. Measuring firm profitability by return on assets ROA or return on equity Received in revised format ROE the results demonstrated that using more debt in capital structure would positively increase the performance November 21 2019 of the firm but this positive effect was increasingly declining. Moreover evidence showed that human capital had Accepted November 21 2019 a positive impact on the result of business activities. A larger size of a firm could positively boost firm performance. Available online Regarding firm location a firm locating in the metropolitan of Ho Chi Minh City had a higher level of performance November 21 2019 than a firm locating in the metropolitan of Hanoi capital. Finally operating status of the firm as well as the Keywords establishment of industrial park had insignificant impacts on firm profitability. Construction sector Firm profitability Human capital Debt Capital structure choice 2020 by the authors licensee Growing Science Canada 1. Introduction In the background of the economic global integration and economic growth Vietnam has experienced such a high economic growth rate foreign investment attraction export performance and firm activities expansion Dollar 2002 World Bank 2011 . In the construction industry the 2003 land law reform and the 2013 recent land law Vietnam has expanded the doors for .