Title: | Leverage and Corporate Investment - Evidence from Vietnam |
Author(s): | Xuan Vinh Vo |
Keywords: | Corporate investment; Leverage; Vietnam |
Abstract: | This paper explores the link between financial leverage and corporate investment in the context of an emerging market. We use a panel data set of firms listed on the Ho Chi Minh City stock exchange over the period 2006–2015. We employ a fixed effects econometric technique of panel data analysis. Consistent with previous studies, our results reveal a negative link between leverage and investment. This implies that debt disciplinarily constrains corporate investment. However, contrary to previous studies, we find that leverage has a stronger negative impact on corporate investment for firms with high growth opportunities than for firms with low growth opportunities. This finding has relevant implications in the context of emerging markets. |
Issue Date: | 2019 |
Publisher: | Elsevier |
Series/Report no.: | Vol. 28 |
URI: | http://digital.lib.ueh.edu.vn/handle/UEH/57184 |
DOI: | https://doi.org/10.1016/j.frl.2018.03.005 |
ISSN: | 1544-6123 |
Appears in Collections: | INTERNATIONAL PUBLICATIONS
|