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asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 10 May 2021

Trade-Off Theory and Pecking Order Theory: Evidence from Real Estate Companies in Vietnam

Hoang Duc Le, Nguyen Quang Viet, Nguyen Huaong Anh

National Economics University (Vietnam), Posts and Telecommunications Institute of Technology (Vietnam)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.04.02.347

Pages: 79-94

Keywords: Trade-Off Theory, Pecking Order Theory, Capital Structure

Abstract

This study was implemented with the goal of testing the validity of trade-off theory and pecking order theory in determining the capital structure in 50 listed real estate companies in Vietnam. The result of this study shows that the pecking order theory is the more approriate and should be applied for the listed real estate companies in Vietnam, and be the informative document for those firms to take into account the relevant theory to adjust their own capital structure, so that they can raise their own competitiveness and continue the development of the business

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