The Effect of Capital Structure on Financial Performance of Vietnamese Listing Pharmaceutical Enterprises

• 발행기관: 한국유통과학회
• 저자명: Hung The DINH Cuong Duc PHAM
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.9, 329~340쪽, 전체 12쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.09.30

영문 초록

This study investigates the effect of capital structure on the financial performance of pharmaceutical enterprises which are listing on Vietnam’s stock market. The study builds the regression using ROE as dependent variable and four independent variables, including selffinancing, financial leverage, long-term asset and debt to assets ratios. In addition, we use other variables as controlling ones, such as firm size, fixed asset rate and growth. We collect data for the period from 2015 to 2019 of all 30 pharmaceutical enterprises which are currently listing on Vietnam’s stock market. The least square regression (OLS) is used to test the effect of capital structure to the firms’ financial performance. The analysis results show that the financial leverage ratio (LR), long-term asset ratio (LAR) and debt-to-assets ratio (DR) have positive relationship with firm performance, meanwhile the self-financing (E/C) affects negatively to the return on equity (ROE). Upon the findings we suggest that the Vietnamese government should focus on stabilizing macro environment to create favorable environment for enterprises. And the pharmaceutical enterprises should build more reasonable capital structure with higher debt proportion than equity, diversifying loan mobilization channels such as issuing long-term bonds. Additionally, the firms should expand the scale appropriately to maintain development and ability to pay debts.

목차

1. Introduction

2. Literature Review

3. Theoretical Framework

4. Research Methodology

5. Results and Discussion

6. Suggestions and Implications

7. Conclusion

References

키워드

Capital Structure Financial Performance Pharmaceutical Enterprises Vietnam