Investigate the effect of capital structure to Profitability of the company trade commodity trading & industrial services listed on the Vietnam Stock Market

Abstract

This article aims to analyze the impact of capital structure to Profitability of the company trade commodity trading & industrial services listed on the Vietnam Stock Market. The database is used to analyze the secondary data collected from financial reporting years 2011- 2014 of 142 companies trading in goods and services listed in HOSE and HNX. Pooled OLS regression analysis of Panel data have identified capital structure (STD, LTD and DA) and negatively impact Profitability (ROA and ROE) of firms in the survey. Results of this study matched the pecking order theory, but also consistent with experimental studies in developed countries as well as developing countries.