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Impact of Capital Structure on Financial Performance: An Empirical Analysis of Listed Pharmaceutical and Medical Industry in Vietnam

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

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Abstract

This research examines the impact of capital structure on financial performance of listed pharmaceutical and medical firms in Vietnam. Using FGLS regression method on financial datasets of 24 pharmaceutical and medical firms listed on HOSE and HNX in the period from 2012 to 2021. The research results show that the capital structure represented by the debt to total assets ratio has a negative impact on financial performance, and the results have a consensus when using both short-term debt and long-term debt ratios. On the other hand, this research also shows that tangible fixed asset ratios have a negative effect, revenue growth opportunities have a positive effect on financial performance of pharmaceutical and medical firms. The research findings confirm the role of capital structure on the financial performance of firms according to the argument of the pecking order theory and are the basis for proposing some implications to improve financial efficiency for firms.

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Author information

Authors and Affiliations

  1. Faculty of Business Management, Hanoi University of Industry, Hanoi, Vietnam

    Thi Hai Yen Nguyen

  2. Faculty of Corporate Finance, Academy of Finance, Hanoi, Vietnam

    Van Ninh Vu

  3. TCNH2 K14, Hanoi University of Industry, Hanoi, Vietnam

    Thi Thanh Thao Pham

Authors
  1. Thi Hai Yen Nguyen
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  2. Van Ninh Vu
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  3. Thi Thanh Thao Pham
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Corresponding author

Correspondence to Thi Hai Yen Nguyen .

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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Nguyen, T.H.Y., Vu, V.N., Pham, T.T.T. (2024). Impact of Capital Structure on Financial Performance: An Empirical Analysis of Listed Pharmaceutical and Medical Industry in Vietnam. 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_57

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