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Local corruption and capital structure

Author

Listed:
  • Tran, Quoc Trung
  • Nguyen, Van Phong
  • Dang, Duong Huy Chuong
  • Nguyen, Ba Phong
  • Le, Phuong Linh

Abstract

This paper examines how local corruption affects capital structure. With a sample of 6,156 observations from 601 firms listed in Vietnam, we find that local corruption is positively and negatively related to capital structure and capital structure adjustment speed respectively. In addition, our findings show that state ownership reduces the positive effect of local corruption on debt ratio.

Suggested Citation

  • Tran, Quoc Trung & Nguyen, Van Phong & Dang, Duong Huy Chuong & Nguyen, Ba Phong & Le, Phuong Linh, 2023. "Local corruption and capital structure," Finance Research Letters, Elsevier, vol. 55(PB).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003094
    DOI: 10.1016/j.frl.2023.103937
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    More about this item

    Keywords

    Corruption; Local corruption; Capital structure; Vietnam;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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