Management Information Systems Commons^™

Reassessing Theories Of Capital Structure: Empirical Insights From Companies Listed In Vietnam, Ya Dai, Liang Guo, Chang Guo, Hongxian Zhang

Business and Information Technology Faculty Research & Creative Works

Over the past decade, the Vietnamese capital market has undergone a remarkable transformation, with a significant focus on its stock market that has displayed substantial expansion since 2012. This research delves into the impact of this market progression on the choices pertaining to capital structure made by companies listed in Vietnam. By analyzing a range of trade-off and pecking order models and amalgamating them into a unified regression framework, we gauge their capacity to elucidate these decisions. Our study outcomes unveil that the trade-off theory offers a more robust rationale for the capital structure determinations of Vietnamese companies, particularly during …