Abstract
Based on the financial statements of real estate companies listed on Vietnamese stock market, the study has been conducted on factors affecting capital structure. The paper uses GLS (generalized least squared) estimation method related to panel data as well as testing to select the most appropriate model. Research results show that profitable real estate businesses, the ratio of fixed assets to total assets and the number of years of operation have a negative effect on capital structure. In contrast, renewable energy, size and growth are three factors that have positive effects on capital structure. In addition, the corporate income tax rate does not affect the capital structure decisions of real estate businesses. Through research, recommendations for the real estate business executives have been proposed to build an effective capital structure.
Highlights
The capital structure will significantly change depending on many factors, but often focus on the following characteristics: situation of each enterprise, the field in which the business operates as well as the effects from macro-volatility of the economy, cultural factors, religion, and governance behavior (Vanacker & Manigart, 2010)
This study finds out the significant relationship between renewable energy and capital structure formation
This study is to measure the factors affecting capital structure of real estate companies listed on the stock market of Vietnam, the cash dividend policy of real estate companies, we will conduct the method based on 3 models such as POLS (Pooled Ordinary Least Square), fixed effect model (FEM) (Fixed effects model), REM (Random effects model)
Summary
The capital structure will significantly change depending on many factors, but often focus on the following characteristics: situation of each enterprise, the field in which the business operates as well as the effects from macro-volatility of the economy, cultural factors, religion, and governance behavior (Vanacker & Manigart, 2010). In other words, using financial leverage of businesses (Sheikh & Wang, 2011) It is from the correlation between these influencing factors with capital structure, we can evaluate whether the decision to use the enterprise's loan or equity is reasonable or not reasonable, there are shortcomings and what risks arise from which to propose solutions to improve the efficiency of using financial leverage and maximize asset value for businesses (Othman et al, 2020; Gharaibeh, 2015). Few foreign investors have been able to invest in real estate because of maintaining policy of unfavorable and strict foreign ownership. Vietnam is booming the middle class and quick urbanization pace and as the pillars for enhancing the real estate market. To meet the booming demand, Vietnam has to construct a large number of energy factories with supplying approximately 60.000 MW of electricity by 2020, 96.500 MW by 2025, and 129.500 MW by 2030 (Nguyen, Abbott, & Nguyen, 2019; Paramati, Sinha, & Dogan, 2017)
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