RESEARCH ON THE EFFECT OF FINANCIAL STRUCTURE ON BUSINESS EFFICIENCY OF VIETNAM STOCK MARKET LISTED COMPANIES

Abstract

The basic objective of this research is assessing the impact of the financial
structure on the on business efficiency of Vietnam stock market listed companies.To
accomplish the research objectives, the authors conducted a quantitative analysis
through the GMM models, based on the 2-component data set with cross data and
time series data which was collected from financial statements and annual reports
of 418 non-financial companies listed in the period of 2012 to 2020. The results show
that: (i) The financial structure by the debt ratio (TD) has a positive influence on ROA
and has a nonlinear relationship (U-shaped) with ROE; (ii) The financial structure by
the short-term debt ratio (STD) has a positive influence on both ROA and ROE. Based
on the research results, the article has proposed some implications for improving
business efficiency from the perspective of the influence of financial structure of
listed companies on the stock market in Vietnam.