IDEAS home Printed from https://ideas.repec.org/a/taf/glecrv/v46y2017i3p325-349.html
   My bibliography  Save this article

Capital Structure and Investment Financing of Small and Medium-Sized Enterprises in Vietnam

Author

Listed:
  • Huong Thi Trinh
  • Makoto Kakinaka
  • Donghun Kim
  • Tae Yong Jung

Abstract

Insufficient sources of internal financing and inaccessibility of external financing are acknowledged as crucial constraints on new investment for small and medium-sized enterprises (SMEs). This study examines how capital structure is related to investment decision for SMEs in Vietnam. In particular, we investigate the effect of capital structure on the decision to seek new investment as well as the choice of its financing sources. The main results reveal that SMEs with high financial leverage tend to engage more in seeking new investment. Moreover, empirical results demonstrate that among SMEs seeking new investment, those with higher financial leverage are more likely to choose external financing rather than internal financing. These results confirm the dynamic feature of the pecking order theory in the context of SMEs’ capital structure in Vietnam.

Suggested Citation

  • Huong Thi Trinh & Makoto Kakinaka & Donghun Kim & Tae Yong Jung, 2017. "Capital Structure and Investment Financing of Small and Medium-Sized Enterprises in Vietnam," Global Economic Review, Taylor & Francis Journals, vol. 46(3), pages 325-349, July.
    • Handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:325-349
    DOI: 10.1080/1226508X.2017.1340184
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1226508X.2017.1340184
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1226508X.2017.1340184?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Quynh Trang Phan & Poomthan Rangkakulnuwat, 2022. "How price informativeness affects the sensitivity of investment-to-stock price in Vietnamese listed firms," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 12(1), pages 28-61.
    2. Bo Yan & Meng‐Ru Liang, 2023. "Alleviation effect of supply chain finance on financing constraints of high‐tech small‐ and medium‐sized enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1634-1641, April.
    3. Lina Maria. Maya Toro & Manuela. Gallon Bedoya, 2018. "Impact of Private Equity in Colombian Companies: A Case Study," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 4, September.
    4. Hoang Huy Nguyen & Chi Minh Ho & Duc Hong Vo, 2019. "An Empirical Test of Capital Structure Theories for the Vietnamese Listed Firms," JRFM, MDPI, vol. 12(3), pages 1-11, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:325-349. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RGER20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.