SHAHIDAN, Malihe, PANDYA, Kaushik, KUMAR BARUA, Mukesh and MINH THU, Vu Thi (2019). Corporate Governance Feature on Capital Structure Decision of Vietnamese' firms. In: British Academy of Management Corporate Governance Conference. [Conference or Workshop Item]
Documents
25473:539530
PDF
Shahidan_CorporateGovernanceFeature(AM).pdf - Accepted Version
Restricted to Repository staff only
Available under License All rights reserved.
Shahidan_CorporateGovernanceFeature(AM).pdf - Accepted Version
Restricted to Repository staff only
Available under License All rights reserved.
Download (714kB)
Abstract
In the last decade, Corporate Governance has taken more important stage in corporate
strategy. There have been numerous recent cases of malpractice where Enron and VW are
examples of two major international ones. Financial pattern is closely linked to the corporate
governance and it can have a major impact on the firms' performance, competitiveness and
survival. Studies in corporate governance and financial pattern in developed country is
challenging, but in developing country, it makes it even more challenging. Some of the
works found the relationship between corporate governance, capital structure and firm's
performance in Thailand. This paper looks at the Vietnamese firms.
This research focuses on examining the impact of three important features of Board size,
Managerial ownership and Return on assets on capital structure of Vietnamese firms.
Positivist identified as the 'most appropriate' philosophy and the deduction was the best
approach for this research. The regression test applied and it proposes that the above
variables have significant impact on the capital structure decision of the firm. The results
suggest that the larger is the board size, the higher is the debt equity ratio. The significant
positive results of the managerial ownership also suggests if directors and relatives are
shareholders then, there is more desire to borrow than sourcing through equity. The
significant coefficient of return on assets indicates that the higher is the after tax profits on
the total assets, companies prefer to reduce the borrowings.
More Information
Share
Actions (login required)
View Item |