Impact of capital structure on Return on Asset of oil and gas companies in Vietnam

Abstract:

The study analyzes the impact of capital structure on the Return on Assets (ROA) of oil and gas industry enterprises dur- ing the period from 2014 to 2022. Based on data from 44 oil and gas enterprises in Vietnam with 396 observations, the research employs the Pooled Ordinary Least Squares (OLS), Fixed Effects Model (FEM), Random Effects Model (REM), and Generalized Least Squares (GLS) models. Specifically, the revenue growth rate (SGROWTH) has a positive impact on ROA, while the short-term debt ratio (STD) and the period of oil and gas industry crisis (T) have a negative impact on the Return on Assets of oil and gas industry enterprises in Vietnam. This study provides information on the impact of capital structure on oil and gas industry enterprises in Vietnam during the crisis period, aiming to assist business managers in identifying potential risks during the crisis period and proposing appropriate and timely measures.