The impact of capital structure choice on firm’s financial performance: An empirical analysis of delisted firms in Viet Nam

Authors

  • Nguyen Vinh Khuong
    Nguyen Tat Thanh University, Viet Nam
  • Dinh Thi Thu Thao
    Nguyen Tat Thanh University, Viet Nam

DOI:

10.46223/HCMCOUJS.econ.en.6.2.122.2016

Keywords:

Capital Structure; financial performance; delisted firms; stock market; Vietnam

Abstract

The purpose of this study is to examine the impact of capital structure choice on firm’s financial performance delisted companies on the stock market. Based on the data collected from 80 companies delisted from Vietnam stock markets (HNX and HOSE) in the period from 2012 to 2015, using quantitative research methods, we find a correlation between the capital structure and the financial performance of the firms. The study results have some implications for investors and managers in making decisions to optimize their financial performance.

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References

Abor, J. (2005). The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana. The journal of risk finance, 6(5), 438-445.

Ahmad, Z., Abdullah, N. M. H., & Roslan, S. (2012). Capital structure effect on firms performance: Focusing on consumers and industrials sectors on Malaysian firms. International review of business research papers, 8(5), 137-155.

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Booth, L., Aivazian, V., Demirguc‐Kunt, A., & Maksimovic, V. (2001). Capital structures in developing countries. The journal of finance, 56(1), 87-130.

Campello, M. (2007). Asset tangibility and firm performance under external financing: evidence from product markets. Available at SSRN 971170.

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Received: 02-03-2020
Accepted: 02-03-2020
Published: 31-10-2016

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How to Cite

Khuong, N. V., & Thao, D. T. T. (2016). The impact of capital structure choice on firm’s financial performance: An empirical analysis of delisted firms in Viet Nam. HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 6(2), 42–54. https://doi.org/10.46223/HCMCOUJS.econ.en.6.2.122.2016

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Copyright (c) 2016 Nguyen Vinh Khuong; Dinh Thi Thu Thao

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.