IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE IN LISTED ENTERPRISES IN VIETNAM IN THE CONTEXT OF COVID-19

Abstract

Enterprises need to find ways to improve financial efficiency in the current fierce competition
context. Therefore, it is necessary to understand the impact of capital structure on the financial
performance of enterprises in the COVID-19 pandemic. The article uses quantitative methods with data
from the financial statements of 702 businesses listed on the HNX and HOSE stock exchanges from 2015
to 2022 to analyze the influence of independent indicators. Capital structure includes the ratio of debt
to total assets (DTA), the ratio of equity to total assets (EQA), the ratio of long-term debt to total assets
(LDA) to financial performance indicators are also measured including return on assets (ROA), return on
equity (ROE), return on sales (ROS). In addition, the article uses the asset growth rate indicators
GROWTH and Size (SIZE) as two control variables in the model. The results show that the capital
structure of the enterprise has no impact on ROS. The variables LDA, SIZE and GROWTH have a positive
impact on ROA and ROS. There are differences in financial performance for manufacturing and non-
manufacturing industries as well as the negative impact of the Covid-19 pandemic.