Financial development and the determinants of capital development in VN

Abstract

From the past until now, capital structure is a concerning issue of many researchers and cause a lot of debates among the economists. Therefore, financing decision become the most important issue for firms. This paper employ the data from the audited financial statements of 154 non-financial firms listed on HOSE and HNX for the period 2007-2011. We analyse this data by using Eview 7 software to handle many different models such as OLS Model, Fixed Effects Model and Random Effects Model. From this analysis, we explore that: (1) the most efficient model to explain the significant relationship between the determinants of the capital structure and financing decision, (2) the differences in financing policies between state-owned and non state-owned firms, (3) give some assessments about the development of financial maket in Viet Nam, especially after the period which Viet Nam implement equitization policy to setin motion transformation from a centrally-planned to a market-oriented economy.