How does capital structure affect firm’s market competitiveness?
| Autor: | Chi Thi Kim Nguyen, Duy Van Nguyen, Huong Thi Nguyen, Nga Thi Viet Nguyen, Phuong Thi Minh Ho |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Market competition capital structure Capital structure debt ratio Affect (psychology) P12 vietnam Competitive advantage market competition market share distribution HB1-3840 Vietnam Capital (economics) HG1-9999 ddc:330 Operational efficiency Economic theory. Demography Debt ratio G32 Business D41 Industrial organization Finance |
| Zdroj: | Cogent Economics & Finance, Vol 9, Iss 1 (2021) |
| ISSN: | 2332-2039 |
| Popis: | Effective capital decisions not only increase the operational efficiency of businesses but also is strategic to bring the enterprise's competitive advantages to the market. Using an appropriate debt ratio helps businesses to strike a balance between internal and external resources to compete with other enterprises in the industry. This study aims to find out the effects of capital structure through debt ratio (DR) on the competitiveness of enterprises (HHI) in Vietnam. A sample of 574 companies listed on Vietnam's stock exchange from 2010-2018 is studied with STATA software. The results show that capital structure affects the competitiveness of enterprises in reverse U-shape. At the same time, DR affects HHI in the form of the U-shaped function in industrial products, information and telecommunication, and consumer goods. Meanwhile, DR affects HHI in reverse U-shape in the sectors of consumer services, raw materials, and community utilities. With the results of this analysis, the research also provides discussion as well as policy implications for businesses to make optimal use of capital structure to provide competitive advantage in the market. |
| Databáze: | OpenAIRE |
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