Experimental Evidence on Factors Affecting Capital Structure of Vietnamese Joint-Stock Commercial Banks

Abstract

The article analyzes the factors affecting the capital structure of 25 joint-stock commercial banks in Vietnam from 2011 to 2021. We use pooled ordinary least squares model (Pooled OLS), fixed effects model (FEM), random effects model (REM), and general least squares estimation method (FGLS) to find the best-fit model. Empirical results show that bank size (SIZE) and asset growth (GASSET) positively affect the capital structure of Vietnamese joint stock commercial banks. In contrast, the after-tax return on equity (ROE), tangible fixed assets (TANG), and net income (NIM) ratios have the opposite effect.