Effect of Macroeconomic Factors on Capital Structure of the Firms in Vietnam: Panel Vector Auto-regression Approach (PVAR)

摘要

The article examines the impact of macroeconomicfactors on capital structure during the period of economic recession and economic recovery. The authors collected data from the financial statements of 82 firms listed in Vietnam stock market during the Quarter 1/2007-Quarter 2/2016 and using PVAR. The results demonstrate that during economic recession, the economic growth, the bond market, credit market positively impacted the capital structure whereas the stock market showed negative impacts on the capital structure. During economic recovery, economic growth positively impacted on the capital structure and the remaining macroeconomic variables negatively impacted on the capital structure. In addition, capital structure was affected bymicroeconomic variables such as profitability, asset structure, size, growth and liquidity.