JED, Vol. 18, No.3, December 2016, pp. 41-63
Liabilities and The Impacts on Financial Performance of The Vietnamese Listed Small and Medium-Sized Enterprises
Abstract:This research aims to examine the relationship between liabilities and firm performance of the
Vietnamese listed small and medium-sized enterprises (SMEs). We explore a panel data set of
61 listed SMEs in Vietnam from 2011 to 2014 and apply random-effects models to test whether
the financing policy affects firm performance. It is found that leverage policy has a significantly
positive impact on Tobin’s q and a negative impact on ROE of the listed SMEs. Moreover, nonfinancial
variables including joint stock firm age and business areas of SMEs significantly
influence their performances.
Keywords:Liabilities; firm performance; Tobin’s q; ROE; SMEs.