2022/02/09 by Thi Thuy Linh Do
#SMEs #Vietnam. #capital structure
paper · doi:10.5526/esj75
Capital structure has been studied broadly in developed countries but little in developing ones. This study examines the capital structure of Small and Medium-sized Enterprises (SMEs) in Vietnam, and the influence of some determinants including tangibility, profitability, ownership, firm size and firm growth. The result suggests that debt ratio of Vietnamese SMEs is high and ownership does affect the firm’s leverage (or debt/equity ratio) where state-owned SMEs are more highly leveraged than private SMEs. In terms of factors influencing capital structure, profitability and tangibility have negative relationships with the debt ratio of SMEs in Vietnam; firm size has little effect and firm growth appears not to influence significantly the debt ratio of the SMEs.