Thesis Summary Finance - Banking Factors Affecting The Debt Structure Of A Company Listed On The

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

NGO VAN TOAN

FACTORS AFFECTING THE DEBT STRUCTURE OF A COMPANY

LISTED ON THE STOCK MARKET OF VIETNAM

THESIS SUMMARY

Major: Finance - Banking

Industry code: 9.34.02.01

Lecturers:

1. Assoc. Prof. Dr. Le Thi Lanh

2. Dr. Le Thi Anh Dao

HO CHI MINH CITY, MAY 27, 2022

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CHAPTER 1: TOPIC OVERVIEW

1.1. The urgency of the topic

In addition to the issues often studied by trainees in modern corporate finance,

the program is very important to the company's value, especially in the context of

emerging and developing economies in Vietnam. In the context of Vietnam's econo￾my, where capital markets are inefficient, assuming a perfect capital structure does not

exist, debt structure is believed to influence firm value, and the choice of the debt ma￾turity structure the proper maturity can affect the value of the company, in addition,

this choice also helps the company avoid maturity mismatch by aligning the asset

structure with the reduced liabilities. It minimizes the negative impact of the cost of

capital, can resolve agency conflicts, and can reliably signal the quality of a firm's as￾sets (Cai et al., 2008). To ensure the continuity of this study is a continuation of exist￾ing studies (Ngo Van Toan & Pham Thi Thu Hong, 2015; Tran Thi Thuy Linh &

Nguyen Thanh Nha, 2017; Ngo Van Toan, 2018; Nguyen Thanh Liem et al., 2018; Le

Thi Lanh et al., 2021) on the debt maturity structure in Vietnam, with a focus on find￾ing new empirical evidence on the factors affecting the debt maturity structure of

listed companies Vietnam stock market.

In addition to the researched firm characteristics, attention is focused on exter￾nal factors such as the development of the stock market and the development of the

banking sector (Nguyen Thanh Liem et al., 2018; Thuy An Chung & Quynh Trang

Phan, 2020). However, the empirical results are still not consistent, both in terms of

characteristics and external factors (institutional quality and macroeconomics), for

several reasons such as market conditions and other factors. Financial intermediaries,

legal issues, and representations of these factors for experimental results have not yet

been consistent.

There is an increasing interest in assessing the influence of factors on the debt

maturity structure. However, one activity that has not yet been noticed concerning the

study of the debt maturity structure is the moderating role. The moderating role helps

to find relationships previously ignored or unclear and helps to extend the theory,

which is considered a proxy for academic development. Thus, when assessing the in￾fluence of factors on the debt maturity structure, where the company operates and is

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listed on the Vietnamese stock market, in an incomplete market condition, institution￾al quality factors, financial development, and long-term financing of the economy are

believed to be the factors affecting the debt maturity structure. It is necessary to focus

on the moderating role of these factors on the effect of debt ratio on the debt maturity

structure. To the author's knowledge, this has not been focused on in recent years, es￾pecially in Vietnam's economy.

From theoretical and practical problems, it is necessary to identify the research

problem as the factors affecting the company's debt maturity structure in the context

of Vietnam's economy. Along with firm characteristics, institutional and macroeco￾nomic factors need to be taken into account. As the debt structure is analyzed as the

central element of the company's capital structure, the mentioned debt structure is the

most prominent feature of the debt maturity structure (Stephan et al., 2011; Alcock et

al., 2012); Lemma & Negash, 2012; Colla et al., 2020), so the attention of this study is

focused on determining the factors that affect the debt maturity structure. From the

above analysis, it is shown that the factors affecting the use of debt can increase the

company's value in the context of the economy, as in the case of Vietnam, which is an

essential issue to be studied. What should a company in Vietnam need to do to borrow

long-term debt and have a reason for the debt maturity structure? This issue in Vi￾etnam has not received much research attention from scientists. Vietnam. This is an

omission, causing the company to lack a solid basis when making decisions related to

selecting a reason for the debt maturity structure to finance the company's operations.

Due to the important role of the debt maturity structure in the operation of the compa￾ny, to solve this problem, the special task is to find the optimal solutions, thereby

helping the company to operate well in the context of the economy of the country.

Therefore, the author of the thesis boldly conducts the research topic “Factors affect￾ing the debt structure of company listed on the stock market of Vietnam” as the topic

of his doctoral dissertation.

1.2. Research status related to the thesis

1.3. Research objectives and questions

1.3.1. Objectives of the study

1.3.1.1. Overall objectives