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

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.