Thesis summary Finance - Banking: Factors affecting the debt structure of a company listed on the stock market of Vietnam

The overall objective of the thesis is to evaluate the factors affecting the debt maturity structure for the case of companies listed on the Vietnamese stock market. In addition, the idea considers the moderating role of institutional quality, financial development, and long-term financing sources of the economy on the influence of debt ratio on the debt maturity structure for the case of listed companies on the Vietnamese stock market. The thesis provides policy implications for company managers and policymakers.
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Thesis summary Finance - Banking: Factors affecting the debt structure of a company listed on the stock market of VietnamMINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY NGO VAN TOANFACTORS AFFECTING THE DEBT STRUCTURE OF A COMPANY LISTED ON THE STOCK MARKET OF VIETNAM THESIS SUMMARY Major: Finance - Banking Industry code: 9.34.02.01 Lecturers: 1. Assoc. Prof. Dr. Le Thi Lanh 2. Dr. Le Thi Anh Dao HO CHI MINH CITY, MAY 27, 2022 2 CHAPTER 1: TOPIC OVERVIEW1.1. The urgency of the topic In addition to the issues often studied by trainees in modern corporate finance,the program is very important to the companys value, especially in the context ofemerging and developing economies in Vietnam. In the context of Vietnams econo-my, where capital markets are inefficient, assuming a perfect capital structure does notexist, debt structure is believed to influence firm value, and the choice of the debt ma-turity structure the proper maturity can affect the value of the company, in addition,this choice also helps the company avoid maturity mismatch by aligning the assetstructure with the reduced liabilities. It minimizes the negative impact of the cost ofcapital, can resolve agency conflicts, and can reliably signal the quality of a firms as-sets (Cai et al., 2008). To ensure the continuity of this study is a continuation of exist-ing studies (Ngo Van Toan & Pham Thi Thu Hong, 2015; Tran Thi Thuy Linh &Nguyen Thanh Nha, 2017; Ngo Van Toan, 2018; Nguyen Thanh Liem et al., 2018; LeThi Lanh et al., 2021) on the debt maturity structure in Vietnam, with a focus on find-ing new empirical evidence on the factors affecting the debt maturity structure oflisted companies Vietnam stock market. In addition to the researched firm characteristics, attention is focused on exter-nal factors such as the development of the stock market and the development of thebanking sector (Nguyen Thanh Liem et al., 2018; Thuy An Chung & Quynh TrangPhan, 2020). However, the empirical results are still not consistent, both in terms ofcharacteristics and external factors (institutional quality and macroeconomics), forseveral reasons such as market conditions and other factors. Financial intermediaries,legal issues, and representations of these factors for experimental results have not yetbeen consistent. There is an increasing interest in assessing the influence of factors on the debtmaturity structure. However, one activity that has not yet been noticed concerning thestudy of the debt maturity structure is the moderating role. The moderating role helpsto find relationships previously ignored or unclear and helps to extend the theory,which is considered a proxy for academic development. Thus, when assessing the in-fluence of factors on the debt maturity structure, where the company operates and is 3listed on the Vietnamese stock market, in an incomplete market condition, institution-al quality factors, financial development, and long-term financing of the economy arebelieved to be the factors affecting the debt maturity structure. It is necessary to focuson the moderating role of these factors on the effect of debt ratio on the debt maturitystructure. To the authors knowledge, this has not been focused on in recent years, es-pecially in Vietnams economy. From theoretical and practical problems, it is necessary to identify the researchproblem as the factors affecting the companys debt maturity structure in the contextof Vietnams economy. Along with firm characteristics, institutional and macroeco-nomic factors need to be taken into account. As the debt structure is analyzed as thecentral element of the companys capital structure, the mentioned debt structure is themost prominent feature of the debt maturity structure (Stephan et al., 2011; Alcock etal., 2012); Lemma & Negash, 2012; Colla et al., 2020), so the attention of this study isfocused on determining the factors that affect the debt maturity structure. From theabove analysis, it is shown that the factors affecting the use of debt can increase thecompanys value in the context of the economy, as in the case of Vietnam, which is anessential issue to be studied. What should a company in Vietnam need to do to borrowlong-term debt and have a reason for the debt maturity structure? This issue in Vi-etnam has not received much research attention from scientists. Vietnam. This is anomission, causing the company to lack a solid basis when making decisions related toselecting a reason for the debt maturity structure to finance the companys operations.Due to the important role of the debt maturity structure in the operation of the compa-ny, to solve this problem, the special task is to find the optimal solutions, therebyhelping the company to operate well in the context of the economy of the country.Therefore, the author of the thesis boldly conducts the research topic “Factors affect-ing the debt structure of company listed on the stock market of Vietnam” as the topicof his doctoral dissertation.1.2. Research status related to the thesis1.3. Research objectives and questions1.3.1. Objectives of the study1.3.1.1. Overall objectives 4 The overall objective of the thesis is to evaluate the factors affecting the debtmaturity structure for the case of companies listed on the Vietnamese stock market. Inaddition, the idea considers the moderating role of institutional quality, financialdevelopment, and long-term financing sources of the economy on the influence ofdebt ratio on the debt maturity structure ...