Testing the impact of market timing on the capital structure of firms listed on the Vietnamese stock market


Authors

  • Vu Thi Loan VNU University of Economics and Business
  • Ha Bao Tram VNU University of Economics and Business
DOI: https://doi.org/10.57110/vnu-jeb.v4i1.236

Keywords:

Market timing theory, capital structure, leverage, panel data model

Abstract

This study examines the impact of market timing theory on the capital structure of firms listed on the Vietnamese stock market in the period 2015-2022 by using the following methods: panel data regression. The independent variable representing market timing is the weighted average market-to-book ratio of equity financing (M/B EWA), which is a new measurement method compared to studies in Vietnam. In addition, the control variables used in the model include Profitability (PROP), Firm Size (SIZE) and Tangible Assets (TANG). The test results show that there is evidence for the existence of market timing behavior in capital structure decision of listed companies in Vietnam.

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Published

25-02-2024

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How to Cite

Vu Thi Loan, & Ha Bao Tram. (2024). Testing the impact of market timing on the capital structure of firms listed on the Vietnamese stock market. VNU JOURNAL OF ECONOMICS AND BUSINESS, 4(1), 60. https://doi.org/10.57110/vnu-jeb.v4i1.236

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