Research on factors influencing of corporate debt maturity structure: An empirical study of listed companies in exchange stock of Vietnam

Abstract

The maturity structure of a business's debt is one of the very important financing choices a company must make while making its investment decisions. Capital structure is one of the most concerned and well-studied issues in corporate finance, however, scarce studies have examined the debt maturity of firms. The choice of debt maturity structure needs to be suitable for businesses and it allows to avoid bias by aligning assets with liabilities, solving problems related to agency costs, avoiding adverse effects of the cost of capital and signal the quality and value of the firm's earnings. Research investigating macroeconomic factors shows that there are a few significant factors determining the debt maturity structure of Vietnamese enterprises. The study analyzes the factors affecting the debt maturity structure of listed companies on the Vietnamese stock market. The panel data of the sample includes 370 non-financial firms listed on the Vietnamese stock market from 2011 to 2020. The Generalized Least Squares (GLS) model is used in the study. to solve econometric problems and improve the accuracy of the regression coefficients. Panel data analysis with fixed effects model provides empirical evidence showing firm size, firm's quality, liquidity, financial leverage, and asset maturity and a few macro factors are significantly related to the debt term structure of the enterprise.