Impact of capital structure on the profitability of real estate firms listed on Hanoi stock exchange amid Covid-19

Tóm tắt

This paper examines the impact of the capital structure on the profitability
of 34 listed real estated firms in the Hanoi Stock exchange with the inclu
sion of the Covid-19 pademic, period 2018-2021. With the application of
fixed effect, random effect models, and Mann & Whitney U tests, supported
by diversified tests for checking and solving the model flaws, the study’s
findings confirm the negative relationship between the debt-to-total assets
variable and profit efficiency of studied real estate firms. This suggests that
operating under an expected rising interest rate environment aligned with
restricted bank lending real estate sector, Vietnamese real estate firms bal
ance their capital sources, between borrowings, including short-term and
long-term loans with equity. Inclining towards equity capital could be more
expensive but will help businesses reduce the pressure on borrowing costs
and also show how much of the property’s value can be used to secure the
debts of the company