Open AccessRelationship between Corporate Capital Structure and Stocks Liquidity: Empirical Evidence in Vietnam
Author(s) -
Van Thi Thuy Vu,
Thoa Thi Tran,
Xuan Thanh Ngo,
Linh Nhat Nguyen
Publication year - 2020
Publication title -
asian journal of finance and accounting
Language(s) - English
Resource type - Journals
ISSN - 1946-052X
DOI - 10.5296/ajfa.v10i2.13719
Subject(s) - market liquidity , capital structure , stock exchange , monetary economics , profitability index , economics , accounting liquidity , liquidity crisis , business , financial economics , financial system , finance , debt
The paper examines the impact of capital structure on the liquidity of listed shares on the Ho Chi Minh City Stock Exchange, which includes 1078 observations during the period of 2011 – 2017. In addition to the capital structure, the study also looked at the impact of controlled variables including profitability (ROS), corporate value (Tobin’s Q) and size of the business (SIZE) on the liquidity of listed shares. The results show that the capital structure has inherently inverse relationship, while the controlled variables in the model have a positive relationship with stocks’ liquidity.