Factors affecting the capital structure of listed cement companies in Vietnam

Abstract

Identifying and quantifying factors affecting the capital structure of enterprises is always an important target in making capital mobilization policies that every business towards. The research presents an econometric model that identifies the factors that influence the capital structure of listed cement companies in Vietnam with the dependent variable debt ratio. The investigation was performed using panel data from nine cement companies listed between 2010 and 2017. The Pooled ordinary least squares, fixed effects and random effects model are employed. Model selection tests have shown that the fixed effects regression model is more suited to this study. The determinants of capital structrure of listed cement companies include: Enterprise size, tangible assets, growth opportunities, liquidity, profitability. In particular, the factor of enterprise size affects in the same direction and has the greatest impact on the capital structure. The results are in line with the previous experimental study and the characteristics of the operation of Vietnamese cement enterprises. The findings suggest implications for cement companies listing in Vietnam in terms of capital mobilization.