Ownership and Capital Structure of Vietnamese Listed Firms

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An T H Thai


This paper explores the determinants of the capital structure of Vietnamese listed companies, with an emphasis on state ownership. The study uses an updated data sample of 261 firms listed on the Ho Chi Minh Stock Exchange (HOSE), spanning more than eight industries during the period 2007-2014.  The industries are basic materials, consumer goods, health care, industrials, technology, utilities, and other. A total of 2,177 observations are made, of which 1,077 are state observations.  To discover the main factors, several estimators are used, including pooled ordinary least squares (OLS), random effects (REM), fixed effects (FEM), and fixed effects with cluster-robust errors (clustered FEM).  The empirical results demonstrate that the proportion of state investment has no linear impact on firm leverage. The results, however, reveal an inverted U-shaped relationship.

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