The Determinants of Fund Raising Structures of Listed Companies in Vietnam: The Distinct Effects of Government Ownership and Differences between the Hanoi and Ho Chi Minh Stock Markets

ベトナム ジョウジョウ キギョウ ノ シキン チョウタツ コウゾウ ノ ケッテイ ヨウイン : セイフ シハイ ノ エイキョウ ト ハノイ ホーチミン ショウケン トリヒキジョ ノ チガイ

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上場企業

O16

This study investigates the factors determining the debt-ratios of listed companies in the Hanoi and Ho Chi Minh stock exchange markets. Estimation analysis using panel data covering the three-year period from 2006 to 2008 reveals the following results: (1) the debt-ratios of listed companies may be well explained by adjusted MM theory combined with agency cost theory, (2) in order to borrow outside funds in the long-term, the ability to provide collateral is very important even for qualified and listed companies, (3) the debt-ratios of government controlled companies are less affected by their ability to provide collateral, (4) government controlled companies have weak incentives to save corporate tax payments by using debt financing, (5) the debt-ratios of listed companies at the Ho Chi Minh stock exchange are less affected by the amount of their collaterals as well as their corporate tax ratio, and (6) compared to the fund raising activities of small and medium sized companies analyzed by Nguyen (2006) and Biger et al. (2008), those of listed companies could be better explained by using standardized corporate financing theory. These observations suggest several policy implications. (1) Economic reform (Doi moi) policies have successfully built up market based corporate financing systems for listed companies in Vietnam, however, (2) the protection of outside creditors should be further enhanced, as should be the disclosure of corporate information. (3) The further liberalization and privatization of the banking sector is urgently needed.