Title:
The Impact of Capital Structure on Firm Performance: Case of Listed Firms in Food and Beverage Industry in Vietnam

Authors:
Dinh The Hung, Nguyen Mai Huong, Viet Nam

Abstract:

The authors aim to examine the impact of capital structure on the performance of food and beverage companies listed on the stock exchange in Vietnam. The paper investigates the different effect of capital structure on firm performance in food and beverage companies listed on the Vietnam stock market. The panel data of research sample includes 31 food and beverage companies listed on the Vietnam stock market for a period of 5 years, from 2019 - 2023. Through the FGLS model, the study found that the ratio of short-term debt to total assets (STDA) and the ratio of long-term debt to total assets (LTDA) have a negative impact on the performance expressed through return on assets (ROA). The two control variables GROWTH and SIZE both have a positive impact on ROA and return on equity (ROE). Based on findings, some recommendations for food and beverage companies to enhance their profitability in the future.

DOI: https://doi.org/10.51505/IJEBMR.2024.81009