The Impact of Financial Structure on Profitability: Empirical Evidence from Vietnam’s Construction Sector

Asian Economic and Financial Review

article

Pham Thi Nga¹  Tristan Nguyen² 

[1] Berlin School of Economics and Law;Fresenius University

关键词: Financial structure;    Trade-off theory;    Pecking order theory;    Agency theory;    Firm’s profitability;    Construction sector;    Vietnamese economy;    Statistical modelling.;   

DOI  :  10.18488/journal.aefr.2020.109.1028.1036

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

The purpose of this study is to empirically investigate the impact of financial structure—the balance between a firm’s liabilities and equities—on profitability, based on a sample of listed construction companies in Vietnam. Following a literature review, the hypothesis that there is a positive relationship between financial structure and profitability was formulated and tested through pooled ordinary least square, fixed effects, and random effects models. The empirical results revealed that the total, short-term, and long-term debt ratios exert a negative impact on profitability, while asset tangibility, inventory ratios, and growth rate, as well as size and age of firm all positively affect profitability; however, short-term receivable ratios had no effect. These findings contribute empirical evidence, in the context of emerging economies, to the existing body of literature.

【 授权许可】

CC BY