This article investigates the influence of capital structure on corporate performance by using data from 150 Vietnamese listed manufacturing firms from 2008 to 2012. The more appropriate model will be discussed with some empirical results comparing the Random Effects Model (REM) and Fixed Effects Model (FEM) results. The study found that the capital structure has a significant and positive relationship with corporate performance associated with debt to assets and short-term debt to assets. In contrast, corporate performance is insignificantly influenced by long-term debt to assets. On this basis, the article establishes the policy implications for companies, including increased use of financial leverage, attention to the effective exploitation of assets, interest in the conflict of interest between shareholders and creditors.

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Hang, H. T. T. (2015). The effect of capital structure on corporate performance: Evidence in Vietnam. International Journal of Business and Administrative Studies, 1(2), 68-77.