The Effect of Capital Structure, Size and Revenue Growth on the Effectiveness of Garment Businesses Listed on Vietnam’s Stock Market
Main Article Content
Abstract
Considering the impact of the capital structure on the effectiveness of businesses is extremely important. Therefore, this study is conducted in order to find the influences of capital structure, firm size and revenue growth on the performance of the garment businesses listed on Vietnam stock market in the period of 2013-2018 with the representation of return on equity (ROE). The research with the use of panel data has shown that the ratio of short-term debt on total assets, the firm size and the revenue growth all have positive impacts on business performance. Meanwhile, the ratio of long-term debt on total assets has a negative impact on the performance of garment businesses at the statistically significant level of 5%.
Keywords:
Capital structure, panel data, fixed effect, random effect, ROE
References
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[2] Modigliani, Miller, The cost of capital, corporation finance and the theory of investment, The American Economic Review 48 (3) (1958) 261-297.
[3] Berger, Patti, Capital Structure and Firm Performance: A New Approach to Testing Agency Theory and an Application to the Banking Industry, Journal of Banking and Finance, 2002.
[4] Zeitun, Tian, Capital structure and corporate performance: Evidence from Jordan, Australasian Accounting Business and Finance Journal 1 (4) (2007) 40-61.
[5] Ahmad, Abdullah, Roslan, Capital Structure Effect on Firms Performance: Focusin on Consumers and Industrials Sectors on Malaysian Firms, International Review of Business Research Papers, 8(5) (2012) 137-155.
[6] Murilata, An Empirical Analysis of Capital Structure on Firms’ Performance in Nigera, International Journal of Advances in Management and Economics, 1(5) (2012) 116-124.
[7] Doan Ngoc Phuc (2014), The impact of capital structure on the business results of enterprises after privatization in Vietnam, Review of World Economic and Political Issues 7 (219) 2014) số trang đầu-cuối. (in Vietnamese).
[8] Murphy, On metaphoric representation, Elsevier Science, 1996, pp. 173-204.
[9] Margaritis, Psillaki, Capital structure, equity ownership and firm performance, Journal of Business Finance and Accouting 34 (9) (2008) số trang đầu-cuối.