Abstract :

This study tested the relationship between capital structure and firm performance. Data were collected from 41 food and beverage companies listed on the Vietnam Stock Exchange from 2017 to 2021. Three variables were used to measure the performance of each company, including ROA, ROE and EPS. The ratio of total debt to total assets (DA), total debt to total equity (DE), short-term debt to total assets (SDTA) and long-term debt to total assets (LDTA) are the key factors. for capital structure. Besides, growth rate (GROWTH) and company size (SIZE) are also applied in the model as control variables. As a result, most of the capital structure variables have a negative effect on each of the firm’s performance variables. It is noteworthy that this study also illustrates the negative correlation between ROE and capital structure shown, which was thought to be insignificant in many previous studies but also shows a negligible relationship between SDTA and SDTA. Moreover, ROE was rarely seen in previous studies. Furthermore, the research results also show a negligible impact on growth rate and a positive relationship between size and firm performance.

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Keywords :

Capital Structure, Firm performance.

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