THE IMPACT OF FINANCIAL STRUCTURE ON THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN VIETNAM

Abstract

This article analyzes the impact of financial structure on the development of small and medium-sized enterprises (DNN&V) in Vietnam. The article uses a regression model for panel data with a sample of 319 researched enterprises during the period of 2020-2022. The results show that the financial structure has an inverse relationship with the return on total assets, return on equity, and the growth ability of the enterprises. This result is consistent with the hypothesis that using too much debt will make the benefits of borrowing exceed the cost of using debt, including the representative cost of borrowing and financial risk, thus negatively affecting the ability to generate profits.