International Journal of Business and Economics Volume 19, No. 3 December, 2020

Ownership Structure, Capital Structure and Firm Growth:  Empirical Evidence and Sustainable Growth Implication

Hoang N. Pham

American University of Ras Al Khaimah, RAK, United Arab Emirates

Sardar M. N. Islam

Victoria University, Melbourne, Australia

Abstract

This paper investigates the effect of ownership structure and capital structure on different financial variables of firm growth and discusses the implications for sustainable growth. It uses a panel dataset of 2,056 observations of the Vietnamese listed firms for eight years from 2008-2015. The results show that sales growth and asset growth of the firm are determined by private controlling ownership and capital structure instead of state ownership and foreign ownership. The results also imply that ownership structure, initial earnings, and dividend policy are more relevant than capital structure to the firm's sustainable growth rate. This research contributes to an understanding of the influencing factors of firm growth in general, which are helpful to propose some policy recommendations.

Keywords：Firm growth, ownership structure, capital structure, sustainable growth, Vietnam.

JEL Classifications：G32, G34, G38, L25.

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