Liabilities and The Impacts on Financial Performance of The Vietnamese Listed Small and Medium-Sized Enterprises

Nguyen Thanh Lan; Phan Hong Mai; Bui Ba Khiem

doi:10.33301/2016.18.03.03

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Volume 18, Number 3, December 2016

Journal of Economics and Development, Vol. 18, No. 3, December 2016, pp. 41-63.
https://doi.org/10.33301/2016.18.03.03

Liabilities and The Impacts on Financial Performance of The Vietnamese Listed Small and Medium-Sized Enterprises

Authors: Nguyen Thanh Lan; Phan Hong Mai; Bui Ba Khiem

Abstract:

This research aims to examine the relationship between liabilities and firm performance of the Vietnamese listed small and medium-sized enterprises (SMEs). We explore a panel data set of 61 listed SMEs in Vietnam from 2011 to 2014 and apply random-effects models to test whether the financing policy affects firm performance. It is found that leverage policy has a significantly positive impact on Tobin’s q and a negative impact on ROE of the listed SMEs. Moreover, nonfinancial variables including joint stock firm age and business areas of SMEs significantly influence their performances.

Keywords:Liabilities, firm performance, Tobin’s q, ROE, SMEs.

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Liabilities and The Impacts on Financial Performance of The Vietnamese Listed Small and Medium-Sized Enterprises

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