The Effects of Capital Structure and Foreign Ownership on Firm Value: A Case Study of Companies Listed on the Vietnamese Stock Exchange

Abstract

The article studies the influence of capital structure and foreign ownership on the firm value of 412 non-financial companies listed on the Vietnamese stock market from 2010 to 2020 with balanced data. Using the GLS method, research results show that capital structure positively impacts firm value with the proxy variable EV. Foreign ownership also positively impacts firm value for both variables, Tobin's Q and EV. In addition, the research results also show that enterprise size, revenue growth, return on assets, economic growth, corporate age, liquidity and independent board members have a positive effect on firm value with high reliability, but the duality of chairman of the board of directors and Chief Executive Officer respectively give the opposite result with high reliability. Besides, the results also demonstrate no scientific evidence on the impact of return on equity and the percentage of foreign board members on firm value.