Capital structure influences economic efficiency- Empirical evidence at Vietnamese commercial banks

Abstract

In this study, the author uses quantitative methods with a sample of 30 commercial banks in the period 2012- 2017. Author uses the quantitative method to test the capital structure factors to economics efficiency of commercial banks. The results show that there are two impact variables, in which the ownership ratio of the state shareholders has the opposite effect while the ownership of foreign shareholders has the same impact to the economic efficiency of commercial banks. Therefore, the author suggests that commercial banks’ managers should pay attention to attract foreign investment. The State Bank of Vietnam should pay attention to the expansion of foreign ownership on the basis of regulations. In order to create conditions for attracting resources for economic development, the State management agencies should adopt policies to accelerate the equitization in line with the trend of the market economy.