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The Impact of Capital Structure on Business Performance of Vietnamese Enterprises During the Covid 19 Pandemic

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  • Hung, Dang Ngoc

Abstract

This paper investigates the impact of capital structure on business performance of Vietnamese enterprises during the Covid-19 pandemic. The study focuses on key performance indicators such as return on total assets (ROA), return on equity (ROE), and earnings per share (EPS). The analysis employs the table data regression method using a dataset comprising 5747 enterprise observations for the period of 2019 to 2022. The findings indicate that capital structure has a significant negative influence on the business performance of Vietnamese enterprises. Moreover, the study highlights the substantial effect of capital structure on business performance when considering different aspects and debt structures, particularly within the framework of the Covid-19 pandemic. Based on these research findings, the article recommends that business administrators carefully consider the optimal capital structure to enhance business efficiency, especially given the unpredictable nature of the Covid-19 pandemic

Suggested Citation

  • Hung, Dang Ngoc, 2024. "The Impact of Capital Structure on Business Performance of Vietnamese Enterprises During the Covid 19 Pandemic," OSF Preprints 84dae, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:84dae
    DOI: 10.31219/osf.io/84dae
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    References listed on IDEAS

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    1. Hung Dang Ngoc & Van Vu Thi Thuy & Chi Le Van, 2021. "Covid 19 pandemic and Abnormal Stock Returns of listed companies in Vietnam," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1941587-194, January.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Manh Dung Tran & Ngoc Hung Dang, 2021. "The Impact of Ownership Structure on Earnings Management: The Case of Vietnam," SAGE Open, , vol. 11(3), pages 21582440211, September.
    4. Van Vu Thi Thuy & Hung Dang Ngoc & Tram Nguyen Ngoc & Hoang Anh Le, 2022. "Earnings quality and the cost of debt: A case study of Vietnam," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2140489-214, December.
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