The Influence of Financial Structure on Business Performance of Listed Oil and Gas Companies in Vietnam
Main Article Content
Abstract
The research investigates the influences of financial structure on business performance of listed oil and gas companies in Vietnam via their 145 audited observations (financial statements) in 2016-2020. The results show that the more the short-term debt, the higher the proportion of inventory and fixed assets and the lower the business efficiency - however, the market value on book value increases. At the same time, the older and larger the scale, the higher the proportion of state capital and the better the business performance. In each sub-sector of oil and gas companies, there will be different proportions of components in the financial structure, leading to diversity in business performance. This is the basis for the authors to make some recommendations for oil and gas companies and the State to promote the development of this spearhead industry of Vietnam.
Keywords:
Financial structure, business performance, oil and gas companies.*
References
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[14] V. Dawar, “Agency Theory, Capital Structure and Firm Performance: Some Indian Evidence,” Managerial Finance, 40 (12) (2014) 1190-1206.
[15] A. Kraus and Litzenberger, R. H, “A State - Preference Model of Optimal Financial Leverage,” Journal of Finance, 28 (4) (1973) 911-922.
[16] Modigliani, F and Miller, M, “The Cost of Capital, Corporation Finance and the Theory of Investment,” The American Economic Review, 48 (3) (1958) 261-280.
[17] DeAngelo, H and Masulis, R.W, “Optimal Capital Structure under Corporate and Personal Taxation,” Journal of Financial Economics, 9 (1980) 3-29.
[18] Myers, S. and Maijluf, N., “Corporate Financing an Investment Decision when Firms Have Information that Investors do Not Have,” Journal of Financial Economics, 13 (1984) 187-221.
[19] T. Muritala, “An Empirical Analysis of Capital Structure on Firms’ Performance in Nigeria,” International Journal of Advances in Management and Economics, 1 (5) (2012) 116-124.
[2] J. Abor, “The Effect of Capital Structure on Profitability: An Empirical Analysis of Listed Firms in Ghana,” The Journal of Risk Finance, 6 (5) (2005) 438-445.
[3] A. Gill, N. Biger and N. Mathur, “The Effect of Capital Structure on Profitability: Evidence from the United States,” International Journal of Management, 28 (4) (2011) 3-15.
[4] R. Zeitun and G. Tian, “Capital Structure and Corporate Performance: Evidence from Jordan,” Australian Accounting Business and Financial Journal, 1(4) (2007) 40-60.
[5] A. Onaolapo and S. Kajola, “Capital Structure and Firm Performance: Evidence from Nigeria,” Uropean Jounal of Economic, Finance and Administrative Sciences, 25 (2010) 70-82.
[6] A. Khan, “The Relationship of Capital Structure decisions with Firm Performane: A Study of the Engineering Sector of Pakistan,” International Journal of Accounting and Finanial Reporting, 2(1) (2012) 245-262.
[7] Chu Thi Thu Thuy, “Analysis of Factors Affecting Financial Performance: A Case Study at Non-financial Joint Stock Companies Listed on the Ho Chi Minh City Stock Exchange,” Journal of Economics & Development, 215 (2015) 59-66 (in Vietnamese).
[8] Le Thi Hong Tam, “Analysis of the Influence of Financial Structure on Business Performance of Vietnamese Construction Enterprises,” Master's Thesis in Economics, National Economics University, 2020 (in Vietnamese).
[9] Le Thi Nhu, “Analysis of the Relationship between Financial Structure and Profitability in Construction Companies Listed on Vietnam Stock Market,” Master’s Thesis in Economics, National Economics University 2017 (in Vietnamese).
[10] Nguyen Thi Hong Nhung, Do Thi Ly, “Analysis of Factors Affecting the Performance of Construction Material Enterprises in Khanh Hoa Province,” Proceedings of the Scientific Conference: Solutions to Improve Financial Efficiency for Businesses, 2 (2016) 62-64.
[11] Doan Ngoc Phuc, “The Effect of Capital Structure on Business Performance of Enterprises after Equitization in Vietnam,” Journal of World Economic and Political Issues, 3 (2014) 72-80.
[12] I. Berzkalne, “Trade-off Theory vs. Pecking Order Theory-Empirical Evidence from the Baltic Countries,” Journal of Economic and Social Development, 1 (1) (2014) 22-32.
[13] I. Ebaid, “The Impact of Capital - Structrure Choice on Firm Perpormance: Empirical Evidence from Egypt,” The Journal of Risk Finance, 10 (5) (2009) 477-487.
[14] V. Dawar, “Agency Theory, Capital Structure and Firm Performance: Some Indian Evidence,” Managerial Finance, 40 (12) (2014) 1190-1206.
[15] A. Kraus and Litzenberger, R. H, “A State - Preference Model of Optimal Financial Leverage,” Journal of Finance, 28 (4) (1973) 911-922.
[16] Modigliani, F and Miller, M, “The Cost of Capital, Corporation Finance and the Theory of Investment,” The American Economic Review, 48 (3) (1958) 261-280.
[17] DeAngelo, H and Masulis, R.W, “Optimal Capital Structure under Corporate and Personal Taxation,” Journal of Financial Economics, 9 (1980) 3-29.
[18] Myers, S. and Maijluf, N., “Corporate Financing an Investment Decision when Firms Have Information that Investors do Not Have,” Journal of Financial Economics, 13 (1984) 187-221.
[19] T. Muritala, “An Empirical Analysis of Capital Structure on Firms’ Performance in Nigeria,” International Journal of Advances in Management and Economics, 1 (5) (2012) 116-124.