Determinants of capital structure of the food and beverage enterprises listed on Vietnam's stock market: Bachelor thesis of Banking and Finance / Le Nhat Minh Anh ; supervisor Nguyen Thi Nhu Quynh

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THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

BANKING UNIVERSITY HO CHI MINH CITY

--------------------------------------

LE NHAT MINH ANH

DETERMINANTS OF CAPITAL STRUCTURE OF THE

FOOD AND BEVERAGE ENTERPRISES LISTED ON

VIETNAM’S STOCK MARKET

GRADUATION THESIS

MAJOR: FINANCE AND BANKING

Ho Chi Minh,2022

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THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

BANKING UNIVERSITY HO CHI MINH CITY

--------------------------------------

LE NHAT MINH ANH

DETERMINANTS OF CAPITAL STRUCTURE OF THE

FOOD AND BEVERAGE ENTERPRISES LISTED ON

VIETNAM’S STOCK MARKET

GRADUATION THESIS

MAJOR: FINANCE AND BANKING

SUPERVISOR

NGUYEN THI NHU QUYNH, PHD.

Ho Chi Minh,2022

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COMMITMENT

The author commits an honorary statement about your scientific thesis, specifically

as follows:

Full name of the author: Lê Nhật Minh Anh

Born on October 2nd, 1998 in DaNang, Viet Nam

Hometown: DaNang, Viet Nam

Currently, last year student majoring in Finance and Banking, at Banking

University Ho Chi Minh City.

While studying at Banking University Ho Chi Minh, the author declares that

The thesis: Determinants of the capital structure of the Food and Beverage listed on

Vietnam‘s stock market.

Major in: Finance - Banking

Science supervisor: Nguyễn Thị Như Quỳnh, PhD.

This thesis has never been submitted anywhere else before. The thesis is the author's

own research work. The research results are reliable, in that there are no previously

published contents or contents made by others except for cited sources fully in the

thesis.

Ho Chi Minh City, 11 April 2022

The Author

Lê Nhật Minh Anh

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ACKNOWLEDGMENT

First of all, the author would like to thank the Banking University of Ho Chi Minh

City and the teachers who enthusiastically helped with knowledge, taught and

imparted valuable knowledge as well as necessary documents for the author's work.

qualified to complete this thesis.

In particular, I would like to express my deep gratitude to my supervisor,

Ms.Nguyen Thi Nhu Quynh, PhD. for her attention, guidance and meticulous

guidance so that I could complete my thesis in the best way.

Finally, I would like to thank my family, brothers and sisters, and friends who

wholeheartedly cared and created the best conditions for the author to complete this

graduation thesis.

However, due to the limited expertise and knowledge of the research area, this

thesis still contains many errors. The author is looking forward to receiving the

comments of the teachers so that I can complete the thesis better.

The Author

Lê Nhật Minh Anh

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ABSTRACT

The purpose of this thesis is to investigate determinants that affect the capital

structure of the food and beverage (F&B) companies listed on the Vietnam Stock

Exchange. Thereby offering some recommendations to support F&B firms improve

their capital structure suitable for their business activities. Data was collected from

the audited financial report of 34 the F&B enterprises listed on Vietnam‘s stock

collected from the published annual financial market from 2009 to 2020 and were

analyzed by using Stata.14 software. Thesis using Feasible Generalized Least

Squares (FGLS) regression models to ensure the effectiveness of the chosen

models. The dependent variable is financial leverage. The thesis uses eight

independent variables are firm size, profitability, tangibility, growth opportunity,

tax, non-debt tax shield, liquidity, and uniqueness of products. The research results

show that firm size has a positive effect on the financial leverage; while

profitability, tangibility, non-debt tax shield, liquidity, and uniqueness of products

have a negative effect on the financial leverage. The two remaining factors such as

growth opportunity and tax affect financial leverage but the coefficient of regression

is not statistically significant in the study model.

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TÓM TẮT KHÓA LUẬN

Mục đích của bài khóa luận là nghiên cứu các yếu tố ảnh hưởng đến cấu trúc

vốn của các doanh nghiệp ngành F&B niêm yết trên Sở giao dịch chứng khoán Việt

Nam. Qua đó đưa ra một số khuyến nghị nhằm hỗ trợ các doanh nghiệp F&B cải

thiện cơ cấu vốn phù hợp với hoạt động kinh doanh của mình.Nghiên cứu sử dụng

dữ liệu tại các báo cáo tài chính đã kiểm toán của 34 doanh nghiệp F & B được

niêm yết trên thị trường chứng khoán của Việt Nam được trong giai đoạn từ năm

2009 đến năm 2020 và được phân tích bằng phần mềm Stata.14. Bài khóa luận này

sử dụng mô hình hồi quy Feasible Generalized Least Squares (FGLS) để đảm bảo

tính hiệu quả của các mô hình đã chọn. Biến phụ thuộc là đòn bẩy tài chính. Tám

biến độc lập là quy mô doanh nghiệp, khả năng sinh lời, tính hữu hình, cơ hội tăng

trưởng, thuế, lá chắn thuế không nợ, tính thanh khoản và tính độc đáo của sản

phẩm. Kết quả nghiên cứu cho thấy quy mô doanh nghiệp có ảnh hưởng tích cực

đến đòn bẩy tài chính; trong khi khả năng sinh lời, tính hữu hình, lá chắn thuế

không nợ, tính thanh khoản và tính độc đáo của sản phẩm có ảnh hưởng tiêu cực

đến đòn bẩy tài chính. Hai yếu tố còn lại như cơ hội tăng trưởng và thuế không ảnh

hưởng đến đòn bẩy tài chính vì chúng không có ý nghĩa thống kê trong mô hình

nghiên cứu.

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CONTENT

ACKNOWLEDGMENT ...........................................................................................................ii

ABSTRACT..............................................................................................................................iii

TÓM TẮT KHÓA LUẬN ........................................................................................................iv

LIST OF ABBREVIATIONS....................................................................................................1

LIST OF TABLE.......................................................................................................................2

CHAPTER 1. INTRODUCTION..............................................................................................3

1.1. REASONS FOR CHOOSING THE TOPIC...........................................................3

1.2. RESEARCH OBJECTIVES AND RESEARCH QUESTIONS ...............................5

1.2.1. General objective of research : ............................................................................5

1.2.2. Specific research objectives:................................................................................5

1.2.3. Research question: ...............................................................................................5

1.3. OBJECTS AND SCOPE OF RESEARCH ...............................................................6

1.3.1. Research subject: ................................................................................................6

1.3.2. Research scope:...................................................................................................6

1.4. METHODOLOGY ....................................................................................................6

1.5. MEANING OF THE THESIS ...................................................................................7

1.5.1. Theoretical meaning ................................................................................................7

1.5.2. Practical meaning.................................................................................................7

1.6. STRUCTURE OF THE TOPIC.................................................................................7

CHAPTER 2. THEORETICAL BACKGROUND AND LITERATURE REVIEW................9

2.1 OVERVIEW OF CAPITAL STRUCTURE................................................................9

2.1.1 Definition of capital structure ...............................................................................9

2.1.2 Meaning of capital structure in business...............................................................9

2.1.3 Measure capital structure of the enterprise .........................................................10

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2.2 THEORETICAL BACKGROUND OF CAPITAL STRUCTURE ..........................11

2.2.1 Modigliani & Miller's Theory (M&M theory)....................................................11

2.2.2 The trade-off theory............................................................................................13

2.2.3 Pecking order theory...........................................................................................14

2.2.4 Market time theory..............................................................................................15

2.2.5 Agency costs theory............................................................................................17

2.3 DETERMINANTS OF A ENTERPERISE‘S CAPITAL STRUCTURE .................18

2.4. OVERVIEW OF PREVIOUS EMPIRICAL STUDIES ..........................................21

2.4.1. Foreign researches .............................................................................................21

2.4.2. Domestic researches ..........................................................................................23

Summary of chapter 2..............................................................................................................31

CHAPTER 3. METHODOLOGY ...........................................................................................32

3.1. RESEARCH PROCESS ..........................................................................................32

3.2. RESEARCH MODEL .............................................................................................33

3.3. RESEARCH HYPOTHESES...............................................................................36

3.4. RESEARCH METHODOLOGY ............................................................................40

3.5. DATA ......................................................................................................................43

Summary of chapter 3..............................................................................................................44

CHAPTER 4: RESEARCH RESULT ANALYSIS ................................................................45

4.1. DESCRIPTIVE STATISTICS OF VARIABLES ...................................................45

4.1.2. Correlation analysis of variables.......................................................................46

4.2. REGRESSION MODEL RESULTS .......................................................................47

4.2.1. The model chosen .............................................................................................47

4.2.2. Test results........................................................................................................48

4.3. RESEARCH RESULTS DISCUSION.....................................................................52

Summary of chapter 4..............................................................................................................55