Determinants affecting on capital structure of listed companies on Ho Chi Minh Stock Exchange

Abstract

 The purpose of this paper is to investigate the determinants affecting the capital structure of enterprises listed on the Ho Chi Minh Stock Exchange (HOSE) in the short term and long term. Using a sample of 148 non-financial businesses during the 2011-2018 period. By estimating Feasible Generalized Least Squares (FGLS) regression model to ensure the effectiveness of the models. The research results show that the firm size, asset structure, growth opportunities, and liquidity are positively correlated to the long-term financial leverage; profits are negatively correlated to this indicator. In the short-term, the firm size, profits, structure of assets, and liquidity have a negative correlation with financial leverage. The tax does not affect financial leverage both in the short and long term.