Effects of Financial Crisis on Capital Structure of Listed Firms in Vietnam

Trinh, Truong Hong; Phuong, Nguyen Thao

doi:10.5430/ijfr.v7n1p66

Cited by 11 publications

(28 citation statements)

References 16 publications

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“…The study of Susilawati et al (2012), Zare et al (2013), and Sutrisno (2016) supports the explanation of Rajan and Zingales. Actually, the previous studies related to the impact of asset structure on capital structure show not only the positive impact, but also a negative impact (see study of Akbar & Buttho, 2012;Chechet et al, 2013;Acaravci, 2015;Hamidah, 2016;Trinh & Phuong, 2016) and an insignificant impact (Vãtavu, 2012 andSakinah &Anggono, 2014).…”

Section: |mentioning

confidence: 95%

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Sahabuddin¹

2017

Jurnal Keuangan Dan Perbankan

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Debt was able to be used by firm as source of funds for investment-related activities, especially when the amount of retained earnings was not sufficient to cover the amount of investment needed. Naturally, the use of debt definitely caused the agency conflict between firm shareholders and debt holders. To reduce this conflict, the existence of fixed assets as collateral was needed when firm decided to borrow money from debt holders. The purpose of this study was to prove the agency theory perspective by testing an impact of asset structure on capital structure of firms. The population of this study was the firms listed on Indonesia Stock Exchange and Malaysian Stock Exchange. The firms as sample were taken from the population by conducting stratified random sampling method. The pooled data regression model was used as the data analysis method. This result of this study showed that asset structure had the positive impact on capital structure. It meant the causal relationship between asset structure and capital structure happened and was supported by the agency theory perspective. ABSTRAKPinjaman dapat digunakan oleh sebuah perusahaan sebagai sumber dana untuk membiayai kegiatan-kegiatan yang berkaitan dengan investasi, terutama ketika laba ditahan tidak lagi mencukupi kebutuhan untuk investasi. Penggunaan pinjaman tentu saja menyebabkan konflik agensi antara pemegang saham dengan kreditur atau pemegang utang. Untuk mengurangi konflik agensi ini, keberadaan aset tetap sebagai barang jaminan diperlukan ketika perusahaan memutuskan untuk meminjam uang dari kreditur.Tujuan penelitian ini yaitu untuk membuktikan berlakunya perspektif teori agensi dengan menguji pengaruh struktur aktiva terhadap struktur modal perusahaan. Populasi yang digunakan dalam penelitian ini yaitu perusahaan-perusahaan yang tercatat di Bursa Efek Indonesia dan Bursa Malaysia. Perusahaan-perusahaan yang digunakan sebagai sampel diambil dari populasinya dengan menggunakan metode stratifikasi random. Penelitian ini menggunakan model regresi data gabungan sebagai metode analisis data. Hasil penelitian ini menunjukkan bahwa struktur aktiva berpengaruh positif terhadap struktur modal. Hal ini berarti hubungan kausalitas antara struktur aktiva dan struktur modal terjadi dan didukung oleh perspektif teori agensi.

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Section: |mentioning

confidence: 95%

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Sahabuddin¹

2017

Jurnal Keuangan Dan Perbankan

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“…Several relevant studies have been conducted in Asia. For example, Trinh and Phuong (2016) examined the impact of the financial crisis on the capital structure of 265 listed Vietnam-based companies during the 2006–2013 period. The OLS-based results yielded no evidence of a significant change in company capital structure during the crisis.…”

Section: Theoretical Framework and Previous Empirical Studiesmentioning

confidence: 99%

“…Previous studies have noted the importance of considering macroeconomic factors regarding capital structure (Cook and Tang, 2010; Frank and Goyal, 2009; Korajczyk and Levy, 2003), not least when global economic events tend to have significant domestic economic effects at the firm level. Although there is considerable research into the determinants of small- and medium-sized enterprise (SME) capital structure, relatively little empirical research (Balios et al , 2016; Daskalakis et al , 2017; Demirgüç-Kunt et al , 2015; Ferrarini et al , 2017; Iqbal and Kume, 2014; Proença et al , 2014; Trinh and Phuong, 2016; Zeitun et al , 2017) has examined how capital structure changes during economic recessions, and how firms are affected in times of crisis. Halling et al (2016) have claimed that surprisingly little is known about the relationship between firms’ business cycles and their capital structures.…”

Section: Introductionmentioning

confidence: 99%

Financial crisis and SME capital structure: Swedish empirical evidence

Yazdanfar

Homayoun

2019

JES

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Purpose The purpose of this paper is to empirically examine capital structure determinants of small- and medium-sized enterprises (SMEs) during and after the global financial crisis. Design/methodology/approach Statistical methods, including ordinary least squares and the generalised method of moments, were used to analyse a sample of over 40,800 Swedish SMEs operating in four industries during the 2008–2015 period. Findings The results indicate that the independent variables – i.e. financial crisis, profitability, size, tangibility and industry affiliation – to various degrees explain changes in short-term debt (STD) and long-term debt (LTD) ratios. In particular, the empirical findings indicate that the sampled SMEs tended to rely more on STD and LTD during (2008–2009) than after (2010–2015) the financial crisis. Research limitations/implications Due to data availability, the current study is limited to a sample of Swedish SMEs in four industries covering eight years. Further research could examine the generalisability of these findings by investigating other firms operating in other industries and other countries. Originality/value This study is one of few examining determinants of short- and long-term SME debt during and after the global financial crisis, using data from a large-scale cross-sectional database.

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“…Of these, they find that collateral plays a leading role in credit making decisions and the second most important factor is the number of relationships SMEs have with banks. Trinh and Phuong (2016) examined the effects of financial crisis on capital structure of listed firms in Vietnam. The purpose of this research is to investigate the relation between the leverage and firm size, growth, profitability, tangibility, together with crisis dummies is built based on a sample of 265 firms listed on Hanoi Stock Exchange and Ho Chi Minh City Stock Exchange.…”

Section: Related Researchmentioning

confidence: 99%

Credit Management Guidelines to Strengthen Thai Industrial Sector

KULCHITTIVEJ¹,

Pornpundejwittaya²,

Silpcharu³

2020

JAFEB

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This research investigates the credit management guidelines to strengthen Thai industrial sector. The research has been simulated from the findings of both qualitative and quantitative of 500 questionnaires distributed to industrial business executives in Thailand. The data were analyzed by descriptive analysis categorized into SME and large enterprises, and SEM to conduct the model in consistent with the empirical data. The results show that: (1) the credit management guidelines consist of 4 factors: a) characteristics management b) financial management c) operations management and d) assets management. The business executives gave overall importance on the guidelines at a high level with an average of 3.86. (2) The development of SEM shows that the model fits with the empirical data at Chi-Square probability level = 0.084, CMIN/DF = 1.164, GFI = 0.965 and RMSEA = 0.018. (3) The characteristics management directly influences the financial management and the operation management. The financial management directly influences on the assets management. The assets management has direct influence on the operations management. The findings show that the characteristics management is the essential starting component in SEM and the financial management factor has the most influence in the assets management variable with standard regression weight of 0.990.

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Effects of Financial Crisis on Capital Structure of Listed Firms in Vietnam

Cited by 11 publications

References 16 publications

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Financial crisis and SME capital structure: Swedish empirical evidence

Credit Management Guidelines to Strengthen Thai Industrial Sector

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