The impact of Capital Structure on Financial Performance of Firms: Evidence from Hanoi Stock Exchange


Thi Hong Diep Pham ,

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Volume 9 - March 2020 (03)


This paper analyzes the impact of capital structure on financial performance of listed firms in the Hanoi stock exchange. The panel data of 383 listed firms in the period 2015-2019 were regressed by pooled least squares regression model (Pooled OLS), fixed effect model (FEM) and random effect model (REM). The results show that capital structure negatively effects financial performance, which is represented by three indicators like return on equity (ROE), return on total assets (ROA) and earnings per share (EPS). On the other hand, the firm size positively impacts on ROA and EPS while growth opportunities and asset structure negatively affect ROE and ROA.


capital structure, financial performance, debt ratio, earning per share, structure of the assets, Hanoi stock exchange.
JEL: C33, G32


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