Corporate debt and investment with financial constraints: Vietnamese listed firms

[Display omitted] 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 data...

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Bibliographic Details
Published in:Research in international business and finance 2018-12, Vol.46, p.268-280
Main Author: Phan, Quynh Trang
Format: Article
Language:English
Subjects:
Corporate investment
Debt maturity
Emerging markets
Firm constraints
Leverage
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Summary:[Display omitted] 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.
ISSN:0275-5319
1878-3384
DOI:10.1016/j.ribaf.2018.03.004