The Effect of International Capital Flows on Corporate Capital Structures: Empirical Evidence from Vietnam

• 발행기관: 한국유통과학회
• 저자명: Tung Van TRAN Tri M. HOANG
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.4, 263~276쪽, 전체 14쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.04.30

영문 초록

This study examines the effect of international capital flows on corporate capital structures in Vietnam by analyzing panel data from all non-financial listed firms from 2005 to 2014 using pooled ordinary least square (OLS) with a variance estimator. The analysis includes a comparison of the signs and significance of the variable coefficients from the perking order and static trade-off theories to the empirical results to determine the optimum approach to the corporate capital structure given Vietnam’s high-inflation environment. The results indicate that international capital flows have a positive relation to the debt ratio in the long term, and the relationship is more robust for 2005–2009 than for 2010–2014. Corporate capital structures adjusted to changes in the business environment in different sub-periods (2005–2009 and 2010–2014). When the economic environment became more favorable, the pecking order theory’s predictive power increased, and that of trade-off theory lessened. Manufacturing and non-manufacturing firms required different capital structure decisions to fuel their operations and grow under foreign competition. The analysis demonstrates that firms should intensify their use of long-term debt relative to the availability of capital, which is an implication not only for firms in particular but also for industrial innovation overall.

목차

1. Introduction

2. Literature Review

3. Data and Method

4. Empirical Results

5. Conclusion

키워드

Capital Structure Financial Integration Capital Flows Listed Firms Vietnam