Managerial ownership and capital structure in Vietnamese listed firms

Abstract:

This study investigates the impact of the managerial ownership (Board of Directors - BOD and Board of Management - BOM) on capital structure. Using a balanced panel dataset of Vietnamese listed firms from 2010 to 2022, the regression results show that the CEO and BOM’s ownership CEO affect the capital structure, while the Chairperson and BOD’s ownership has no significant effect on the choice of capital structure. Specifically, the higher the proportion of shares held by the CEO and BOM, the more likely the firm tends to use more debt. These results suggest some policy and managerial implications for managers and policymakers in Vietnam.