A Comparative Study Of Capital Structure Of Listed Companies In China And Vietnam Building Materials Industry

China has become the largest producer and the largest consumer of building materials in the world.This is a big challenge for Vietnamese building material industry.Vietnamese building material companies not only face competition within the industry but also have to compete with Chinese imported building material products,making Vietnam’s building material companies must carefully consider the company’s survival issues before making any decisions.Because,the capital market in Vietnam is not perfect,so how can a company choose a reasonable capital structure to ensure the sustainable development of the company?By using the latest financial information of listed companies in the China-Vietnam building materials industry from 2012 to 2016 as the period of study.The empirical analysis results have shown that the factors affecting capital structure of listed companies in the China-Vietnam building materials industry mainly revolves around industry factors and characteristics of the company.The research results have shown that the listed companies of Sino-Vietnam building materials industry follow the new preferential financing theory.However,the capital structure of listed companies in Sino-Vietnam building materials industry shares the same point that internal financing is too low and Vietnam is relying more on external financing.Besides that,the 8 factors in the model and the 5 indicators in common have a significant linear relationship with the capital structure of China-Vietnam building materials listed companies.These factors include repayment ability,return on assets,size of company,growth,asset type.In particular,the ability to repay debt,return on assets and type of assets related to the capital structure of listed building materials companies in China.The growth is positively related to the capital structure of the listed companies in the China-Vietnam building materials industry.There is a significant positive correlation between firm size and the capital structure of listed companies in China’s building materials industry,and a negative correlation with the capital structure of listed companies in Vietnam’s building materials industry.The other three factors,operational capacity,development capacity,and product market competition have nothing to do with the capital structure of listed companies in Vietnam’s building materials industry,and they have a negative correlation with the capital structure of listed companies in China’s building materials industry.This study not only further enriches the theory and practice of the comparative study of capital structure,but also helps the management of listed companies in China and Vietnam evaluate and analyze the capital structure.At the same time,it helps to develop and perfect the capital structure theory of the new capital market countries,so as establishing a capital structure theory suitable for China and Vietnam.