The empirical evidence about the optimal capital structure threshold of listed companies on HOSE

Abstract

Viet Nam is integrating into the world economy and the global value chain, along with the process of equitisation of state- owned enterprises and private enterprises. The equitisation helps businesses be more active in choosing between liability and equity. However, the question is how to choose reasonable structure between liability and equity? And in reality whether have a optimal capital structure that bring the highest effective for businesses? Therefore, the research will focus on determining a optimal capital structure threshold and offer some recommendations for enterprises base on empirical analysis of the capital structure of joint stock companies listed on the Ho Chi Minh city stock exchange (HOSE), 2006- 2014.