The determinants of dynamic debt maturity structure: evidence from Vietnam

Abstract

Based on the signaling, matching, agency and tax-based theories, this paper presents a study where the partial adjustment model was applied to investigate influences of firm and macroeconomic factors on the debt maturity structure. The outcomes were then used in a case study to assess the rate of adjusting the debt maturity structure of 279 non-financial companies listed on the Ho Chi Minh Stock Exchange (HOSE) in the period from 2007 to 2015. Results obtained from the System GMM (SGMM) method showed that (1) firms in Vietnam have the dynamic debt maturity structure with the adjustment rate of 25% to 36%, (2) the debt maturity structure of firms in Vietnam is affected by firm factors including SIZE, VOL, LIQ, TAN, AM and TAX and characteristics of the economy such as inflation and interest rates.