Articles

The Effect of Capital Structure on the Ho Chi Minh Stock Exchange (HOSE) Performance of Companies Listed in the Plastics Industry

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The relationship between capital structure and company performance was examined in this study. From 2019 to 2023, information was gathered from 29 plastic firms that were listed on the Ho Chi Minh Stock Exchange (HOSE). Each company’s performance was gauged using three variables: ROA, ROE, and EPS. The major components of capital structure are the ratios of total debt to total assets (DA), total debt to equity (DE), short-term debt to total assets (SDTA), and long-term debt to total assets (LDTA). In addition, the model incorporates growth rate (GROWTH) and company size (SIZE) as control variables. Consequently, every performance characteristic of the company is negatively impacted by the majority of the capital structure variables. Notably, this study not only demonstrates the weak association between SDTA and SDTA but also the negative correlation between ROE and capital structure, which was considered minor in many earlier studies. Furthermore, prior research had not consistently shown ROE. Additionally, the study’s findings indicate that size and company performance are positively correlated and have no effect on growth pace.

Impact of Capital Structure on Firm Performance of Food and Beverage Listed Companies on the Stock Exchange of Vietnam

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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.