The impact of debt and bond issuance on operation performance of listed real estate companies in Vietnam

Abstract

The sustainable development of the real estate industry is currently attracting the attention of many regulators and researchers, as the real estate is contributing significantly to the economic
growth. Among various solutions to release the challenges faced by real estate enterprises, solutions related to capital mobilization, including both debt and bond issuance, have been discussed from various perspectives. To establish a robust foundation for these solutions, it is essential to conduct studies evaluating the impact of debt and bond issuance on the performance efficiency of real estate enterprises. The paper uses OLS, FEM, REM and FGLS regression methods, based on panel data collected from financial statement of 36 listed real estate company in HOSE and HNX exchanges during the 2015-2022 period. The results indicate that the companies’ ROA, ROE is negatively impacted by short term debt and bond issuance, while positively impact by longterm debt. Based on the findings, the paper provides policy recommendations regarding capital sources for the sustainable development of the real estate enterprises.