Institutional Quality Matter and Vietnamese Corporate Debt Maturity

Abstract

This article studies whether firm-level and country-level factors affect to the corporation's debt maturity in case of Vietnam or not. The paper adopts the balance panel data of 267 listed companies on two trading board HOSE and HNX in the period from 2008 to 2015, estimated by FEM, REM, 2SLS and GMM method. To intrinsic factors, research results show that financial leverage and default risk control have high positive statistical significance with the debt maturity, but tangible assets are lower than those factors. In addition, growth opportunities and company quality have negative impacts to the debt maturity. To external factors, the results point out that economic growth, stock market development and governmental regulation's efficiency demonstrate the positive relationship to the debt maturity with fairly low correlation levels. In spite of that, inflation rate, financial development, the rule of law, corruption control and the rights of creditor factors have negative correlations to the debt maturity.

Keywords

Debt maturity, long-term debt ratio, GMM system, firm-level factors, country-level factors

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