Corporate debt and investment with financial constraints: Vietnamese listed firms

Quynh Trang Phan ()

Research in International Business and Finance, 2018, vol. 46, issue C, 268-280

Abstract: In this paper, we investigate how the choices of debt level and debt maturity could affect firm investment behaviors. We also test firm investment – debt financing relation in the control of several firm-specific characteristics in different sub-samples. Using a balanced panel dataset of Vietnamese listed firms over the period 2010–2016, the regression results show that the level of debt significantly negatively impacts on firm investment but the maturity of debt is insignificantly related to investment rate. The negative relation between leverage and firm investment also holds for private firms with long-term loans financing from banks. For state-shareholding enterprises, debt maturity has positively effect on investment level.

Keywords: Leverage; Debt maturity; Corporate investment; Firm constraints; Emerging markets (search for similar items in EconPapers)
JEL-codes: G30 G31 G32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:46:y:2018:i:c:p:268-280

DOI: 10.1016/j.ribaf.2018.03.004

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