Impacts of capital structure on business performance of joint – stock companies listed in VietNam securities market

Abstract

The paper aims to generalize theories on the relationships between capital structure and business performance, then conduct an empirical study on non-financial joint-stock companies listed in Vietnam securities market in the 2011-2015 period. Via the analysis of panel data of 346 companies with the total of 1730 observations, research findings indicate that capital structure has considerable impacts on business value and there exist inverted U-shaped relationships between capital structure and return on equity.