Capital Structure in Small and Medium‑ sized Enterprises: The Case of Vietnam

Capital structure and performance of Middle East and North Africa (MENA) banks: an assessment of credit rating

“…Large firms have lower agency costs than smaller firms (Chung, 1993). They may be able to make the best use of economies of scale in issuing long-term debt and can exert bargaining power over creditors (Nguyen and Ramachandran, 2006). Large firms may be able to take advantage of the tax shield, so they require more debt (Deesomsak, Paudyal and Pescetto, 2004).…”

The Determinants of Capital Structure in the Service Industry: Evidence from United States

“…Many studies suggest that there is a positive relationship between firm size and leverage [7]. Marsh [35] indicates that large firms more often choose long-term debt, while small firms choose short term debt.…”

“…Marsh [35] indicates that large firms more often choose long-term debt, while small firms choose short term debt. The cost of issuing debt and equity is negatively related to firm size [7]. In addition, larger firms are often diversified and have more stable cash flows, and so the probability of bankruptcy for larger firms is less, relative to smaller firms.…”

“…Pecking order theory suggests that a firm's growth is negatively related to its capital structure [7]. Myers and Majluf [24] indicate that information asymmetry demands an extra premium for firms to raise external funds, irrespective of the true quality of their investment project.…”

“…Biger, Nguyen, and Hoang [6] and Nguyen and Neelakantan [7] have tested variables by collecting data from Vietnamese firms. This study extends the studies of Biger, Nguyen, and Hoang [6] by collecting data from the US service industry.…”