Factors Affecting Capital Structure of Real Estate Businesses Listed on the Vietnamese Stock Market

Abstract

The article investigates the factors affecting the capital structure of real estate businesses listed on the Vietnamese stock market in the period 2012–2021. We use the data of 33 listed real estate companies with a number of observations of 330. By using ordinary least square (OLS), fixed-effects model (FEM), and random-effects model (REM) approaches, the results show that firm size (SIZE) and age of firms (AGE) have a positive relationship with debt ratio (TLEV). Besides, three variables, including tangible fixed assets (TANG), liquidity (LIQ), and profitability (ROA), have a negative relationship with debt ratio (TLEV). In addition, the research results did not find a relationship between the two independent variables, growth rate (GROW) and corporate income tax rate (TAX), with debt ratio (TLEV).