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http://dx.doi.org/10.13106/jafeb.2020.vol7.no11.689

Factors Affecting Capital Structure of Listed Construction Companies on Hanoi Stock Exchange  

NGUYEN, Nguyet Minh (Faculty of Transport Economics, University of Transport Technology)
TRAN, Kien Trung (Faculty of Transport Economics, University of Transport Technology)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.11, 2020 , pp. 689-698 More about this Journal
Abstract
The aim of this article is to determine the influence of factors on the capital structure of construction companies listed on the Hanoi Stock Exchange. The data of the article were collected and calculated from the financial statements of 54 construction companies listed on Hanoi Stock Exchange from 2012 to 2019. With the application of E-view software in quantitative analysis to build panel data regression model (panel data), the article has built a regression model to determine the relationship of intrinsic factors affecting the capital structure of construction companies listed on Hanoi Stock Exchange. In the study, dependent variable is capital structure, determined by the debt-to-equity ratio. Profitability, coefficient of solvency, size, loan interest rate, structure of tangible assets, and growth are independent variables. The results showed that the two factors of growth and firm size positively affect the capital structure, the profitability factor has the opposite effect on capital structure. Factors of short-term debt solvency, average loan interest rate and tangible asset structure have no correlation with capital structure. The findings of this article are useful for business administrators, helping business managers make the right financial decisions to make capital structure decisions in their own conditions.
Keywords
Capital Structure; Construction Companies; Growth Rate; Profitability; Firm Size;
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Times Cited By KSCI : 6  (Citation Analysis)
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