Determinants of capital structure of listed firms in the pharmaceutical sector in Vietnam

• Main Author: Bùi, Thị Minh Huyền
• Other Authors: Nguyen, Van Dinh
• Format: Theses and Dissertations
• Language: English
• Published: 2020
• Subjects: Cơ cấu vốn; Dược phẩm; 658
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/93324
• Institution: Vietnam National University, Hanoi

This research aims to study the factors influencingthe capital structure of pharmaceutical companies listed on stock exchanges in Vietnam. This study uses data from financial statements, annual reports, management reports of listed companies that publish data on thestock market during the period 2010-2019. The study used the Ordinary Least Square method to estimate the parameters of the model. The study used different independent variables including company characteristics (profitability,growth opportunity, tangible assets, liquidity, firm size, firm age) and corporate governance (pluralist executives). Research results show that profitability, tangible assets, and liquidity have a negative correlation with capital structure. However, research also illustrates firm size, firm age and pluralist executives have a negative correlation with capital structure but they do not have statistical significance. In contrast, growth opportunities have a positive relationship with capital structure. Generally, the results are mostconsistent with previous studies on capital structure. In addition, the study also shows the direction and the level of the influence of the above independent variables on the capital structure of pharmaceutical companies listed on the Hanoi Stock Exchange and Ho Chi Minh City Stock Exchange are different. Also, the study proposed some recommendations for pharmaceutical listed firms to get a reasonable capital structure as well as investors and related parties when they would like to invest in pharmaceutical listed firms in Vietnam