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Analysis of Factors Affecting the Capital Structure of Industrial Enterprises Listed on Vietnam Stock Market

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Proceedings of the 4th International Conference on Research in Management and Technovation (ICRMAT 2023)

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Abstract

This study aims to analyze factors affecting the capital structure of industrial enterprises with a sample of 21 companies in Vietnam in the period 2015–2022. This study points out the factors that affect the capital structure such as: the size of the company to mobilize capital, the rate of return, financial difficulties, the tax shield from debt. This results show that there is a relationship between the index components of the thesis and the financial leverage ratio. After overcoming the model defect to find the core model of the study with factors included in the test, it could explain 44.42% of the fluctuation of financial leverage. It can be concluded that the independent variables that affect the financial leverage of industrial firms include firm size, rate of return, and non-debt tax shields. Based on this study, industrial enterprises can take steps to improve the most important metrics to improve their profits.

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Author information

Authors and Affiliations

  1. Academy of Finance, 58 Le Van Hien Ward, Dong Ngac, Bac Tu Liem, Hanoi, Vietnam

    Cao Minh Tien, Luu Nguyen Phu & Hoang Hai Ninh

  2. Foreign Trade University, No. 91 Chua Lang Street, Dong Da District, Hanoi, Vietnam

    Duong Thi Thu Trang

  3. FPT University, Hoa Lac Hi-Tech Park, Thach Hoa, Thach That, Ha Noi, Vietnam

    Vu Tuan Minh

Authors
  1. Cao Minh Tien
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  2. Duong Thi Thu Trang
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  3. Luu Nguyen Phu
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  4. Hoang Hai Ninh
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  5. Vu Tuan Minh
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Corresponding author

Correspondence to Cao Minh Tien .

Editor information

Editors and Affiliations

  1. Centre for Post-Graduate Studies, Hanoi University of Industry, Hanoi, Vietnam

    Thi Hong Nga Nguyen

  2. Gillings School of Global Public Health, University of North Carolina at Chapel, Chapel HIll, NC, USA

    Darrell Norman Burrell

  3. Department of Computer Science and Engineering, CMR Institute of Technology, Hyderabad, Telangana, India

    Vijender Kumar Solanki

  4. Accounting and Auditing Faculty, Academy of Finance, Hanoi, Vietnam

    Ngoc Anh Mai

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© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

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Tien, C.M., Trang, D.T.T., Phu, L.N., Ninh, H.H., Minh, V.T. (2024). Analysis of Factors Affecting the Capital Structure of Industrial Enterprises Listed on Vietnam Stock Market. In: Nguyen, T.H.N., Burrell, D.N., Solanki, V.K., Mai, N.A. (eds) Proceedings of the 4th International Conference on Research in Management and Technovation. ICRMAT 2023. Springer, Singapore. https://doi.org/10.1007/978-981-99-8472-5_40

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