Capital Structure of the Firms in Vietnam During Economic Recession and Economic Recovery: Panel Vector Auto-regression (PVER) Approach

摘要

The paper examines the differences between capital structure of enterprises in the circumstances of macro variables's fluctuations due to the economic recession, the instability of economic recovery and the impact of macro variables to capital structure. The authors analyze the data of 82 companies listed on Vietnam Stock Exchange, Quarter 1/2007-Quarter 2/2016, by using PVAR. The results show that the deviation of average capital structure during economic recession versus economic recovery is 0.0142%. There is a relationship between macro variables such as economic growth, credit market, bond market, stock market and capital structure. This relationship explains 4% of the change in these variables. In addition, micro variables such as profitability, business risk, liquidity negatively impact and asset structure, and growth rate positively impact on the capital structure.