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International Conference of the Thailand Econometrics Society

TES 2018: Predictive Econometrics and Big Data pp 502–516Cite as

Effect of Macroeconomic Factors on Capital Structure of the Firms in Vietnam: Panel Vector Auto-regression Approach (PVAR)

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Part of the Studies in Computational Intelligence book series (SCI,volume 753)

Abstract

The article examines the impact of macroeconomicfactors on capital structure during the period of economic recession and economic recovery. The authors collected data from the financial statements of 82 firms listed in Vietnam stock market during the Quarter 1/2007-Quarter 2/2016 and using PVAR. The results demonstrate that during economic recession, the economic growth, the bond market, credit market positively impacted the capital structure whereas the stock market showed negative impacts on the capital structure. During economic recovery, economic growth positively impacted on the capital structure and the remaining macroeconomic variables negatively impacted on the capital structure. In addition, capital structure was affected bymicroeconomic variables such as profitability, asset structure, size, growth and liquidity.

Keywords

  • Capital structure
  • Economic recession
  • PVAR

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Author information

Authors and Affiliations

  1. Head of Research Institute, Banking University of Ho Chi Minh City, 36 Ton That Dam Street, District 1, Ho Chi Minh City, Vietnam

    Nguyen Ngoc Thach

  2. Banking University of Ho Chi Minh City, Ho Chi Minh City, Vietnam

    Tran Thi Kim Oanh

Authors
  1. Nguyen Ngoc Thach
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  2. Tran Thi Kim Oanh
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Corresponding author

Correspondence to Nguyen Ngoc Thach .

Editor information

Editors and Affiliations

  1. Computer Science Department, University of Texas at El Paso, El Paso, Texas, USA

    Vladik Kreinovich

  2. International College, Chiang Mai University, Chiang Mai, Thailand

    Songsak Sriboonchitta

  3. International College, Chiang Mai University, Chiang Mai, Thailand

    Nopasit Chakpitak

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Thach, N.N., Oanh, T.T.K. (2018). Effect of Macroeconomic Factors on Capital Structure of the Firms in Vietnam: Panel Vector Auto-regression Approach (PVAR). In: Kreinovich, V., Sriboonchitta, S., Chakpitak, N. (eds) Predictive Econometrics and Big Data. TES 2018. Studies in Computational Intelligence, vol 753. Springer, Cham. https://doi.org/10.1007/978-3-319-70942-0_36

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  • DOI: https://doi.org/10.1007/978-3-319-70942-0_36

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