Study the Impact of Growth, Firm Size, Capital Structure, and Profitability on Enterprise Value: Evidence of Enterprises in Vietnam

• Published in: The Journal of corporate accounting & finance Vol. 30; no. 1; pp. 144 - 160
• Main Authors: Dang, Hung Ngoc, Vu, Van Thi Thuy, Ngo, Xuan Thanh, Hoang, Ha Thi Viet
• Format: Journal Article
• Language: English
• Published: Hoboken Wiley Periodicals Inc 01-01-2019
• Subjects: Capital structure; Economic models; Vietnam
• ISSN: 1044-8136; 1097-0053
• DOI: 10.1002/jcaf.22371

This article studies the effect of growth, firm size, capital structure, and profitability on enterprise value (EV) in Vietnam. The study used a panel of 1.070 observations at 214 companies listed on the Vietnamese stock market for the period of 2012–2016. According to regression results by generalized least squares and structural pathways analysis, the results detected size and profitability are positively correlated with the enterprise value, while capital structure is a factor that negatively affects the enterprise value. On the other hand, growth factor does not have any impact on enterprise value. However, when measuring enterprise value under EV or Tobin's Q, the statistical results are not entirely consistent. In addition, the results of the study have also shown that the measurement of EV on enterprise value will be more appropriate. The results of empirical research are useful to help businesses improve their values. © 2019 Wiley Periodicals, Inc.