THE EFFECT OF STOCK LIQUIDITY ON CAPITAL STRUCTURE OF STOCKS LISTED IN THE VIETNAM STOCK EXCHANGE

  • Võ Thị Thúy Anh
  • Phan Trần Minh Hưng

Abstract

The purpose of this study is to investigate the impact of stock liquidity on capital structure in the context of Vietnam. We employ a comprehensive data set of stocks listed both Stock Exchanges in Vietnam to conclude that stock liquidity is negatively correlated with capital structure. Moreover, this relationship is not driven by the crisis. The results support the trade-off theory, the pecking order theory and the important role of liquidity in reducing the costs of issuance.

Keywords: Stock liquidity, capital structure, listed firms.

điểm /   đánh giá
Published
2020-02-07
Section
Bài viết