Impact of factors on corporate financial leverage: Empirical evidence from building materials and real estate enterprises in Vietnam

Abstract

 The research is to find out factors affecting financial leverage of listed building materials and real estate enterprises in Vietnam. The dependent variable is financial leverage and has nine independent variables including: Enterprise size, tangiable assets, liquidity, profitability, growth opportunities, unique, tax, tax shield benefits from depreciation, age. Through the application of static panel data estimation methods, combined with the development, selection, testing and remediation of model defects, the study has selected 3 models for three data groups: The model with data of real estate firms, the model with data of building materials firms and the data model combines two sectors in Vietnam based on the generalized least squares estimation method (GLS). The result of the study is basically consistent with relevant empirical studies. Notably, the data in the research sample is governed by the classification order theory and static trade- off capital structure theory. The research may be useful to financial advisors, investors and corporate financial administrators.