Factors Affecting the Capital Structure of Companies in the Industry, Agriculture, and Services Listed on the Vietnamese Stock Market

Abstract

The study collects data from 75 industrial, agricultural, and service companies listed on the two stock exchanges HOSE and HNX in the period from 2020 to 2023. At the same time, the study uses Hausman and Breusch, and Pagan Lagrangian multiplier tests to select the model that best explains the factors affecting capital structure. The research results show that corporate income tax rate and revenue growth rate have a positive impact on the debt ratio, while the profitability ratio and operating risk of the company are negatively correlated with the debt ratio. Other factors such as tangible assets and company size have an impact on the choice of a firm's capital structure but are not statistically significant.