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Relationship between Corporate Capital Structure and Stocks Liquidity: Empirical Evidence in Vietnam

Author

Listed:
  • Van Thi Thuy Vu
  • Thoa Thi Tran
  • Xuan Thanh Ngo
  • Linh Nhat Nguyen

Abstract

The paper examines the impact of capital structure on the liquidity of listed shares on the Ho Chi Minh City Stock Exchange, which includes 1078 observations during the period of 2011 – 2017. In addition to the capital structure, the study also looked at the impact of controlled variables including profitability (ROS), corporate value (Tobin’s Q) and size of the business (SIZE) on the liquidity of listed shares. The results show that the capital structure has inherently inverse relationship, while the controlled variables in the model have a positive relationship with stocks’ liquidity.

Suggested Citation

  • Van Thi Thuy Vu & Thoa Thi Tran & Xuan Thanh Ngo & Linh Nhat Nguyen, 2018. "Relationship between Corporate Capital Structure and Stocks Liquidity: Empirical Evidence in Vietnam," Asian Journal of Finance & Accounting, Macrothink Institute, vol. 10(2), pages 151166-1511, December.
    • Handle: RePEc:mth:ajfa88:v:10:y:2018:i:2:p:151166
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    References listed on IDEAS

    as
    1. Roll, Richard, 1984. "A Simple Implicit Measure of the Effective Bid-Ask Spread in an Efficient Market," Journal of Finance, American Finance Association, vol. 39(4), pages 1127-1139, September.
    2. Lesmond, David A & Ogden, Joseph P & Trzcinka, Charles A, 1999. "A New Estimate of Transaction Costs," The Review of Financial Studies, Society for Financial Studies, vol. 12(5), pages 1113-1141.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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