Open AccessFactors affecting cost of debt of companies listed on Ho Chi Minh S tock Exchange
Author(s) -
Nguyen Hai Yen,
Ngo Phu Thanh,
Bui Ngoc Loc
Publication year - 2019
Publication title -
khoa học và công nghệ: kinh tế - luật - quản lý
Language(s) - English
Resource type - Journals
ISSN - 2588-1051
DOI - 10.32508/stdjelm.v2i3.521
Subject(s) - debt , leverage (statistics) , weighted average cost of capital , business , external debt , debt ratio , monetary economics , debt to gdp ratio , debt levels and flows , internal debt , ho chi minh , stock exchange , cost of capital , financial system , finance , economics , profit (economics) , demographic economics , individual capital , machine learning , financial capital , computer science , low income , microeconomics
Cost of debt is one of factors that firms consider when making their financing decision. Firms use more debt for their operating business in case of lower debt cost. Therefore, determing the impact factors on cost debt is interested in by firms and scholars. This study uses samples of 313 listed firms on Ho Chi Minh Stock exchange over period 2012 to 2017. The finding is that foreign ownership, state ownership, and financing leverage adversely affect on debt cost, while average 12-month interest positively impacts on the cost of debt.