All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Nham T.H. Nguyen, Bao K.Q. Nguyen, Bao C.N. To and Tam T.H. Le
''Capital Structure and Performance in Vietnamese Construction Firms: Using Quantile Regression Approach''
( 2021, Vol. 41 No.3 )
The paper aims to analyze the impact of capital structure on the performance of construction firms. We used data taken from annual firm survey conducted by General Statistics Office of Vietnam (GSO) associated with 13,912 construction firms. Instead of using only a sample with listed firms, we also added unlisted firms to ensure overall representation. The results from quantile regression show that capital structure positively affects firms' performance. On each different percentile, the level of impact of capital structure is also different. The lower the percentile, the stronger the impact of capital structure on the performance—the strongest impact is at the 0.1 percentile, the lowest is at the 0.9 percentile. This implies that construction firms will well exploit the benefits from debt at lower percentiles. In the high percentiles, construction firms will prioritize using equity over debt.
Keywords: Capital structure, performance, construction firms, quantile regression, Vietnam.
JEL: G3 - Corporate Finance and Governance: General
Manuscript Received : Dec 27 2020 Manuscript Accepted : Sep 17 2021

  This abstract has been downloaded 561 times                The Full PDF of this paper has been downloaded 153559 times