THE IMPACT OF CAPITAL STRUCTURE ON BUSINESS PERFORMANCE OF REAL ESTATE ENTERPRISES LISTED AT HO CHI MINH CITY STOCK EXCHANGE

Abstract

This study is conducted to investigate the impact of capital structure on business performance of 25 firms in the real estate industry listed on Ho Chi Minh City Stock Exchange (HOSE) from 2011 to 2018. The research results show that capital structure has a negative impact on the business performance. In addition, the study has also found that tangible asset (TANG) shows a positive impact on performance of real estate firms and is consistent in all 03 regression models according to FGLS. This shows that the more listed real estate firms have tangible fixed asset, the more effective is their business performance. With control variables including firm size (SIZE), liquidity (LIQ), asset growth (GROWTH), economic growth (GDP), inflation rate (INF), the study found no evidence to conclude the relationship between these control variables and business performance