Factors affecting capital structure of trucking companies on Vietnam’s stock market

Abstract

Using econometric techniques for panel data, this study quantifies factors affecting capital structure of trucking companies on Vietnam’s stock market in the period 2015-2019, with difference in debt maturities. Estimation results indicate that, for the capital structure measured by debt ratio, factors of profitability, corporate income tax and liquidity have a negative effect on the capital structure while non-debt tax shield has a positive impact on the structure. If the structure is estimated by long-term debt ratio, results illustrate that there exists a negative relationship between profitability and the capital structure as well
as a positive relationship between tangible fixed assets, growth rate, and capital structure. Besides, if the capital structure is estimated by short-term debt ratio, factors of profitability, tangible fixed assets, corporate income tax, and liquidity have a negative impact on the capital structure while the non-debt tax shield has the positive influence on the structure.