Journals Information
Universal Journal of Accounting and Finance Vol. 10(2), pp. 509 - 516
DOI: 10.13189/ujaf.2022.100215
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Impact of Debt Structure, State Ownership on Business Performance in Energy Enterprises: A Case Study in Vietnam
Nguyen Thi Xuan Hong , Dang Ngoc Hung *
Faculty of Accounting and Auditing, Hanoi University of Industry, Hanoi, Vietnam
ABSTRACT
This study examines the impact of debt structure and the interaction of state ownership on business performance of energy enterprises in Vietnam's stock exchange. Data in the study were collected in the period 2009-2020 with 665 observations, the estimated results by the GLS regression model show that short-term debt and long-term debt have a negative impact on business performance when measured by ROA and Tobin's Q. In energy enterprises in Vietnam, the state often holds the dominant stock, so in this study, we consider the impact of the interaction margin of state ownership, this study finds that the interaction of state ownership and short-term debt have a positive effect on business performance measured by ROA. In addition, the study also looks into control variables, namely firm size, liquidity ratio and asset structure that have a positive impact on business performance. We provide some recommendations to improve capital structure and business performance: Energy companies need to build an optimal capital structure to maximize business value; Investors can quantify the model to decide whether or not to invest or how much to invest in an energy business; The government needs to look into and consider holding a controlling stake in energy enterprises that are really necessary and bring good business results.
KEYWORDS
Debt Structure, Business Performance, State Ownership, Energy Business
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Nguyen Thi Xuan Hong , Dang Ngoc Hung , "Impact of Debt Structure, State Ownership on Business Performance in Energy Enterprises: A Case Study in Vietnam," Universal Journal of Accounting and Finance, Vol. 10, No. 2, pp. 509 - 516, 2022. DOI: 10.13189/ujaf.2022.100215.
(b). APA Format:
Nguyen Thi Xuan Hong , Dang Ngoc Hung (2022). Impact of Debt Structure, State Ownership on Business Performance in Energy Enterprises: A Case Study in Vietnam. Universal Journal of Accounting and Finance, 10(2), 509 - 516. DOI: 10.13189/ujaf.2022.100215.