Open Access

Downloads

Download data is not yet available.

Abstract

This study uses the theory of market timing in considering capital structure of the sample of 430 companies which are listed on Vietnam's stock market and implemented IPO in the period of 2006 - 2012. Following the research method of Alti (2006), the article used the variable HOT to represent the factor of market timing in order to understand the relationship between this variable and leverage variable in the short-term (in the year of IPO) and in the long-term (year of IPO + 1, IPO + 2, ..., IPO + 6). The results showed no statistically significant evidence about the negative relationship between the HOT and leverage ratios. It implies that in the first time that companies issue their share capital to the public, the ―active‖ or ―gloomy‖ situation of market is not related to the leverage ratio at the moment of observation. In addition, the results also showed that variables relating to characteristics of company such as growth potential, profitability and scale have a statistically significant relation to capital structure and tangible has no impact on leverage ratio.



Author's Affiliation
Article Details

Issue: Vol 1 No Q3 (2017)
Page No.: 105-120
Published: Dec 31, 2017
Section: Research article
DOI: https://doi.org/10.32508/stdjelm.v1iQ3.460

 Copyright Info

Creative Commons License

Copyright: The Authors. This is an open access article distributed under the terms of the Creative Commons Attribution License CC-BY 4.0., which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 How to Cite
Ngo, T., Tran, T., & Nguyen, D. (2017). The impact of market timing on capital structure: Evidence from Vietnamese listed companies. Science & Technology Development Journal: Economics- Law & Management, 1(Q3), 105-120. https://doi.org/https://doi.org/10.32508/stdjelm.v1iQ3.460

 Cited by



Article level Metrics by Paperbuzz/Impactstory
Article level Metrics by Altmetrics

 Article Statistics
HTML = 1395 times
Download PDF   = 1637 times
Total   = 1637 times