International Journal of Accounting, Finance and Risk Management

Research Article | | Peer-Reviewed |

Factors Impact on Capital Structure Fluctuation of Enterprises Listed on Hose, Vietnam

Received: 3 January 2024    Accepted: 12 January 2024    Published: 23 January 2024
Views:       Downloads:

Share This Article

Abstract

Changes in corporate capital structure were often considered on a yearly basis. However, to more deeply evaluate the fluctuations in corporate capital structure, we collected quarterly panel data of 180 enterprised listed on the Hochiminh Stock Exchange (HoSe, Vietnam) for researching. Regression techniques such as Pooled-OLS, FEM, REM and GLS were used to test the impact of a number of factors on the fluctuation of the capital structure of enterprises listed on HoSE in the period 2015 - 2020. The results of regression analysis showed that profitability, asset turnover, firm size (asset scale), short-term debt ratio and long-term debt ratio showed a positive impact on capital structure fluctuations, meanwhile ROS, firm size (revenue scale), short-term asset ratio and net cash flow showes negative impact on capital structure fluctuations. The findings based on balanced panel data collected quarterly showed differences compared to some previous researches on the same topic, on the other hand, added empirical evidence on the statistically significant relationship of some factors to fluctuations of enterprise capital structure. The results suggested future research directions, continuing empirical researches to demonstrate the impact of regional factors, corporate governance, macro factors,... on fluctuation of capital structure or use an more effective scale of capital structure fluctuations.

DOI 10.11648/j.ijafrm.20240901.12
Published in International Journal of Accounting, Finance and Risk Management (Volume 9, Issue 1, April 2024)
Page(s) 12-18
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Capital Structure, Listed Enterprise, Fluctuations, Impact Factor

References
[1] Buvanendra, S., Sridharan, P., & Thiyagarajan, S. (2017). Firm characteristics, corporate governance and capital structure adjustments: A comparative study of listed firms in Sri Lanka and India. IIMB Management Review. 29(4), 245–258. doi: 10.1016/j.iimb.2017.10.002.
[2] Campbell, G., & Rogers, M. (2018). Capital structure volatility in Europe. International Review of Financial Analysis. 55, 128–139. doi: 10.1016/j.irfa.2017.11.008.
[3] Dang, V. A., & Garrett, I. (2015). On corporate capital structure adjustments. Finance Research Letters. 14, 56–63. doi: 10.1016/j.frl.2015.05.016.
[4] Dang Ngoc Hung (2015). Financial Deteminants of Firms’ performance: Evidence from selected firms on Vietnam Stock Exchange Market. Journal of Science & Technology - Hanoi University of Industry. 29(2015), 84-89.
[5] Duong Thu Minh (2017). Research on the theory of corporate performance of enterprises. Journal of Finance. 665, 48-50.
[6] Hoang Tuan Sinh (2021). Effect of ownership structure on the performance of the listed companies on Vietnam’s stock market. Journal of Finance. 757, 30-32.
[7] Kieschnick, R., & Moussawi, R. (2018). Firm age, corporate governance, and capital structure choices. Journal of Corporate Finance. Volume 48, 597-614.
[8] Le, T. T. & Tran, D. V. (2022). Impact of Several Factors on the Change Speed of Capital Structure of Listed Firms in Vietnam. Journal of Business and Economic Development. Volume 7, Issue 1, pp. 11-17. doi: 10.11648/j.jbed.20220701.12.
[9] Le, T. T. & Tran, D. V. (2021a). The capital structure adjustment speed of the enterprise: Information significance and influencing factors. Journal of Finance. 776, 92-95.
[10] Le, T. T & Tran, D. V. (2021b). The change in capital structure of listed firms in Vietnam: An analysis of cyclicality. Economy And Forecast Review. 36(790), 7-10.
[11] Masulis, R. W. (1980). The effects of capital structure change on security prices. Journal of Financial Economics. 8(2), 139–178. doi: 10.1016/0304-405x(80)90015-x.
[12] Masulis, R. W. (1983). The Impact of Capital Structure Change on Firm Value: Some Estimates. The journal of finance. 38(1), 107-126.
[13] Oino, I., & Ukaegbu, B. (2015). The impact of profitability on capital structure and speed of adjustment: An empirical examination of selected firms in Nigerian Stock Exchange. Research in International Business and Finance. 35, 111–121. doi: 10.1016/j.ribaf.2015.03.004.
[14] Shah, K. (1994). The nature of information conveyed by pure capital structure changes. Journal of Financial Economics. 36 (1994) 89-126. doi.org/10.1016/0304-405X(94)90031-0.
[15] Thies, C. F. & Klock, M. S. (1992). Determinants of Capital Structure. Review of Financial Economics. 1(2), 40-53.
[16] Tran Dinh Van (2023). Factors impact on capital structure change speed: Case of enterprises listed on the Hanoi Stock Exchange. Proceeding of The 8th International Conference on Accounting and Finance (ICOAF-2023), 32-45.
Cite This Article
  • APA Style

    Thanh, L. T., Van, T. D. (2024). Factors Impact on Capital Structure Fluctuation of Enterprises Listed on Hose, Vietnam. International Journal of Accounting, Finance and Risk Management, 9(1), 12-18. https://doi.org/10.11648/j.ijafrm.20240901.12

    Copy | Download

    ACS Style

    Thanh, L. T.; Van, T. D. Factors Impact on Capital Structure Fluctuation of Enterprises Listed on Hose, Vietnam. Int. J. Account. Finance Risk Manag. 2024, 9(1), 12-18. doi: 10.11648/j.ijafrm.20240901.12

    Copy | Download

    AMA Style

    Thanh LT, Van TD. Factors Impact on Capital Structure Fluctuation of Enterprises Listed on Hose, Vietnam. Int J Account Finance Risk Manag. 2024;9(1):12-18. doi: 10.11648/j.ijafrm.20240901.12

    Copy | Download

  • @article{10.11648/j.ijafrm.20240901.12,
      author = {Le Trung Thanh and Tran Dinh Van},
      title = {Factors Impact on Capital Structure Fluctuation of Enterprises Listed on Hose, Vietnam},
      journal = {International Journal of Accounting, Finance and Risk Management},
      volume = {9},
      number = {1},
      pages = {12-18},
      doi = {10.11648/j.ijafrm.20240901.12},
      url = {https://doi.org/10.11648/j.ijafrm.20240901.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20240901.12},
      abstract = {Changes in corporate capital structure were often considered on a yearly basis. However, to more deeply evaluate the fluctuations in corporate capital structure, we collected quarterly panel data of 180 enterprised listed on the Hochiminh Stock Exchange (HoSe, Vietnam) for researching. Regression techniques such as Pooled-OLS, FEM, REM and GLS were used to test the impact of a number of factors on the fluctuation of the capital structure of enterprises listed on HoSE in the period 2015 - 2020. The results of regression analysis showed that profitability, asset turnover, firm size (asset scale), short-term debt ratio and long-term debt ratio showed a positive impact on capital structure fluctuations, meanwhile ROS, firm size (revenue scale), short-term asset ratio and net cash flow showes negative impact on capital structure fluctuations. The findings based on balanced panel data collected quarterly showed differences compared to some previous researches on the same topic, on the other hand, added empirical evidence on the statistically significant relationship of some factors to fluctuations of enterprise capital structure. The results suggested future research directions, continuing empirical researches to demonstrate the impact of regional factors, corporate governance, macro factors,... on fluctuation of capital structure or use an more effective scale of capital structure fluctuations.
    },
     year = {2024}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Factors Impact on Capital Structure Fluctuation of Enterprises Listed on Hose, Vietnam
    AU  - Le Trung Thanh
    AU  - Tran Dinh Van
    Y1  - 2024/01/23
    PY  - 2024
    N1  - https://doi.org/10.11648/j.ijafrm.20240901.12
    DO  - 10.11648/j.ijafrm.20240901.12
    T2  - International Journal of Accounting, Finance and Risk Management
    JF  - International Journal of Accounting, Finance and Risk Management
    JO  - International Journal of Accounting, Finance and Risk Management
    SP  - 12
    EP  - 18
    PB  - Science Publishing Group
    SN  - 2578-9376
    UR  - https://doi.org/10.11648/j.ijafrm.20240901.12
    AB  - Changes in corporate capital structure were often considered on a yearly basis. However, to more deeply evaluate the fluctuations in corporate capital structure, we collected quarterly panel data of 180 enterprised listed on the Hochiminh Stock Exchange (HoSe, Vietnam) for researching. Regression techniques such as Pooled-OLS, FEM, REM and GLS were used to test the impact of a number of factors on the fluctuation of the capital structure of enterprises listed on HoSE in the period 2015 - 2020. The results of regression analysis showed that profitability, asset turnover, firm size (asset scale), short-term debt ratio and long-term debt ratio showed a positive impact on capital structure fluctuations, meanwhile ROS, firm size (revenue scale), short-term asset ratio and net cash flow showes negative impact on capital structure fluctuations. The findings based on balanced panel data collected quarterly showed differences compared to some previous researches on the same topic, on the other hand, added empirical evidence on the statistically significant relationship of some factors to fluctuations of enterprise capital structure. The results suggested future research directions, continuing empirical researches to demonstrate the impact of regional factors, corporate governance, macro factors,... on fluctuation of capital structure or use an more effective scale of capital structure fluctuations.
    
    VL  - 9
    IS  - 1
    ER  - 

    Copy | Download

Author Information
  • Faculty of Finance and Banking, VNU University of Economics and Business, Hanoi, Vietnam

  • Faculty of Finance and Banking, Trade Union University, Hanoi, Vietnam

  • Sections