Effect of factors on the capital structure: a case study in Vietnam's cement industry

Le Thi Minh Nguyen *

* Correspondence: Le Thi Minh Nguyen (email: nguyenltm@vhu.edu.vn)

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Received: 07 Jul 2016
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Accepted: 30 Aug 2016
Published: 31 Aug 2016
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Lê, N. . T. M. (2016). Effect of factors on the capital structure: a case study in Vietnam’s cement industry. Van Hien University Journal of Science 4(3), 30.
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Volume 4 - Issue 3 (2016)
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Abstract

Observations are taken from 17 cement enterprises listed on the stock market of Vietnam (HOSE and HNX) in 2007-2013 to verify the research hypotheses. Results show that factors such as profitability, bussiness age, the ownership percentage of state shares had negative enterprise scale, the higher the long-term debt ratio of total assets, which demonstrates the great ability of large-scale cement enterprises in accessing loans from credit organizations. The study results also emphasize the influence of solvency and the value of fixed assets on capital structure, especially long-term debt ratio of total assets. Particularly, the factor of depreciation tax shield has opposite effects on the debt ratio and the long-term debt ratio of total assets.
Keywords: capital structure, the cement business, the impact factors

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References

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