How does capital structure affect firm’s market competitiveness?

Effective capital decisions not only increase the operational efficiency of businesses but also is strategic to bring the enterprise’s competitive advantages to the market. Using an appropriate debt ratio helps businesses to strike a balance between internal and external resources to compete with ot...

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Autores principales:	Nga Thi Viet Nguyen, Chi Thi Kim Nguyen, Phuong Thi Minh Ho, Huong Thi Nguyen, Duy Van Nguyen
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	market share distribution market competition debt ratio capital structure vietnam Finance HG1-9999 Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/861b95021ca94d7ab270496cf6aa8543
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spelling	oai:doaj.org-article:861b95021ca94d7ab270496cf6aa85432021-11-26T11:19:50ZHow does capital structure affect firm’s market competitiveness?2332-203910.1080/23322039.2021.2002501https://doaj.org/article/861b95021ca94d7ab270496cf6aa85432021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23322039.2021.2002501https://doaj.org/toc/2332-2039Effective capital decisions not only increase the operational efficiency of businesses but also is strategic to bring the enterprise’s competitive advantages to the market. Using an appropriate debt ratio helps businesses to strike a balance between internal and external resources to compete with other enterprises in the industry. This study aims to find out the effects of capital structure through debt ratio (DR) on the competitiveness of enterprises (HHI) in Vietnam. A sample of 574 companies listed on Vietnam’s stock exchange from 2010–2018 is studied with STATA software. The results show that capital structure affects the competitiveness of enterprises in reverse U-shape. At the same time, DR affects HHI in the form of the U-shaped function in industrial products, information and telecommunication, and consumer goods. Meanwhile, DR affects HHI in reverse U-shape in the sectors of consumer services, raw materials, and community utilities. With the results of this analysis, the research also provides discussion as well as policy implications for businesses to make optimal use of capital structure to provide competitive advantage in the market.Nga Thi Viet NguyenChi Thi Kim NguyenPhuong Thi Minh HoHuong Thi NguyenDuy Van NguyenTaylor & Francis Grouparticlemarket share distributionmarket competitiondebt ratiocapital structurevietnamFinanceHG1-9999Economic theory. DemographyHB1-3840ENCogent Economics & Finance, Vol 9, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	market share distribution market competition debt ratio capital structure vietnam Finance HG1-9999 Economic theory. Demography HB1-3840
spellingShingle	market share distribution market competition debt ratio capital structure vietnam Finance HG1-9999 Economic theory. Demography HB1-3840 Nga Thi Viet Nguyen Chi Thi Kim Nguyen Phuong Thi Minh Ho Huong Thi Nguyen Duy Van Nguyen How does capital structure affect firm’s market competitiveness?
description	Effective capital decisions not only increase the operational efficiency of businesses but also is strategic to bring the enterprise’s competitive advantages to the market. Using an appropriate debt ratio helps businesses to strike a balance between internal and external resources to compete with other enterprises in the industry. This study aims to find out the effects of capital structure through debt ratio (DR) on the competitiveness of enterprises (HHI) in Vietnam. A sample of 574 companies listed on Vietnam’s stock exchange from 2010–2018 is studied with STATA software. The results show that capital structure affects the competitiveness of enterprises in reverse U-shape. At the same time, DR affects HHI in the form of the U-shaped function in industrial products, information and telecommunication, and consumer goods. Meanwhile, DR affects HHI in reverse U-shape in the sectors of consumer services, raw materials, and community utilities. With the results of this analysis, the research also provides discussion as well as policy implications for businesses to make optimal use of capital structure to provide competitive advantage in the market.
format	article
author	Nga Thi Viet Nguyen Chi Thi Kim Nguyen Phuong Thi Minh Ho Huong Thi Nguyen Duy Van Nguyen
author_facet	Nga Thi Viet Nguyen Chi Thi Kim Nguyen Phuong Thi Minh Ho Huong Thi Nguyen Duy Van Nguyen
author_sort	Nga Thi Viet Nguyen
title	How does capital structure affect firm’s market competitiveness?
title_short	How does capital structure affect firm’s market competitiveness?
title_full	How does capital structure affect firm’s market competitiveness?
title_fullStr	How does capital structure affect firm’s market competitiveness?
title_full_unstemmed	How does capital structure affect firm’s market competitiveness?
title_sort	how does capital structure affect firm’s market competitiveness?
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/861b95021ca94d7ab270496cf6aa8543
work_keys_str_mv	AT ngathivietnguyen howdoescapitalstructureaffectfirmsmarketcompetitiveness AT chithikimnguyen howdoescapitalstructureaffectfirmsmarketcompetitiveness AT phuongthiminhho howdoescapitalstructureaffectfirmsmarketcompetitiveness AT huongthinguyen howdoescapitalstructureaffectfirmsmarketcompetitiveness AT duyvannguyen howdoescapitalstructureaffectfirmsmarketcompetitiveness
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How does capital structure affect firm’s market competitiveness?

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