We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE DETERMINANTS OF CAPITAL STRUCTURE: A CASE STUDY.
- Authors
Bui Thi Thu Loan; Nguyen Xuan Thang; Dang Phuong Mai; Le Thi My Phuong; Pham Tuan Anh
- Abstract
This paper investigates the determinants of capital structure of business start-ups utilizing simultaneously a survey of business owners’ characteristics and data collected from financial reports submitted to the taxation authorities of 268 newly established enterprises in Hanoi. The results have indicated that most of the hypotheses are accepted and consistent with relevant theoretical models. However, unlike existing studies on the capital structure of startups in developed nations, the influence of a start–up size, profitability, work experience based on relationships prior to starting up a new company, growth orientation and the age of a business are the major determinants of the initial capital structure decision while the asset structure, organizational type, gender, age of owner and education level of business owners does not seem to have a significant impact on the choice of capital structure in the context of transitional economies and financial markets that are not quite developed, such as in Vietnam. The major findings are discussed based on the trade-off theory and the pecking order theory. The article also provides some implications and recommendations for future research.
- Subjects
HANOI (Vietnam); VIETNAM; CAPITAL structure; BUSINESS education; SOCIAL hierarchy in animals; TRANSITION economies; DEVELOPED countries; NEWSPAPERS
- Publication
Journal of Security & Sustainability Issues, 2020, Vol 9, Issue M, p5
- ISSN
2029-7017
- Publication type
Article
- DOI
10.9770/jssi.2020.9.M(1)