Determine capital structure of the firms in Vietnam: panel threshold regression approach

Abstract

The study was to prove the existence of the trade-off theory (TOT) and determine target capital structure of during
economic recession and economic recovery to help businesses maximize firm performance. The author collected
data from the financial statements of 82 firms listed in Viet Nam stock market during the Quarter 1/2007-Quarter
2/2016 and using PTR. Results showed that during economic recession target capital structure of Vietnam
enterprises do not exceed 54.39% but 32.78% level at least. On the other hand, during economic recovery target
capital structure does not exceed 59.66% but 48.99% as the best