Financial Development and the Determinants of Capital Structure in Vietnam

Nguyen, Dung Thuy Thi; Diaz‐Rainey, Ivan; Gregoriou, Andros

doi:10.2139/ssrn.2014834

Cited by 10 publications

(3 citation statements)

References 37 publications

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“…Liquidity exhibits a positive interaction towards the rate of target leverage adjustment and is statistically significant. Furthermore, the findings express the notion that firms with more liquid assets have the option of easily shifting their rate of leverage by using their retained earnings and their internal source of financing (Nguyen et al, 2012).…”

Section: School Of Commerce and Accountancymentioning

confidence: 55%

Moderating Role of COVID-19 Crisis on Firm Leverage Speed of Adjustments: Evidence from Pakistan

Hussain

Mohammad

2023

AAR

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This study evaluates the impact of firm-specific, industry-specific, and macroeconomic determinants on the speed of capital structure adjustment and to see if COVID-19 impacted these relationships. Using quarterly data of all listed non-financial firms in Pakistan for the period 2016-2021, a dynamic panel data model using the generalized method of moment (GMM) was used for estimation. It was found that firm size, growth potential, non-debt tax shield, and GDP growth positively impact firm leverage, while profitability and tangibility negatively impact leverage. The study found evidence of convergence to target leverage by Pakistani firms. These firms' capital structure adjustment speed was estimated as 16.7% per quarter. Moreover, COVID-19 was not found to affect the adjustment speed of firms, directly. Furthermore, greater distance from target leverage, growth potential, and GDP growth rate resulted in a lower speed of adjustment, whereas higher profitability and liquidity were found to increase the speed of adjustment.

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Section: School Of Commerce and Accountancymentioning

confidence: 55%

Moderating Role of COVID-19 Crisis on Firm Leverage Speed of Adjustments: Evidence from Pakistan

Hussain

Mohammad

2023

AAR

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…Furthermore, dynamic capability theory is particularly relevant to the chosen context of this study, which is Vietnamese hospitality sector. Vietnam has been recognized as one of the most dynamic economy in the Asia-Pacific region (Nguyen et al, 2012) and the Vietnamese hospitality sector has been rapidly growing due to the emergence of a number tourist destinations in the country (Luu, 2018). Vietnamese hospitality firms are thus under high pressure to identify the strong dynamic capabilities that could enhance product and process innovation, which would help them survive and develop in such a competitive market.…”

Section: Entrepreneurial Leadership and Innovationmentioning

confidence: 99%

Linking entrepreneurial leadership and innovation performance in hospitality firms: the roles of innovation strategy and knowledge acquisition

Hoang

Nguyen

2023

JSTP

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PurposeTo achieve business success in a competitive market, hospitality firms are urged to search for different ways to enhance the firms' innovation capabilities. Drawing on dynamic capability theory, this study examined the role of entrepreneurial leadership in promoting product and process innovation through the mediating effect of innovation strategy and the moderating effect of knowledge acquisition.Design/methodology/approachData were collected through a time-lagged (two waves, two months apart) survey from 137 managers and 322 employees working in 103 Vietnamese hotels. Structural equation modeling (SEM) was used to test the proposed hypotheses in our conceptual model.FindingsThe findings revealed that entrepreneurial leadership is positively associated with both product and process innovation. In addition, these relationships are mediated by innovation strategy. While the relationship between innovation strategy and product innovation is moderated by knowledge acquisition, evidence was not obtained for the moderation effect of knowledge acquisition on the link between innovation strategy and process innovation.Originality/valueThe findings advance innovation and leadership literature by identifying the roles of entrepreneurial leaders in managing an organization as a dynamic system and developing appropriate innovation strategy to adapt to rapidly changing environments. In addition, this study offers important implications for hospitality firms that are investing in innovation activities and are seeking ways to promote the firms' innovation of products and processes.

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