THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND PERFORMANCE OF SECURITIES BROKERAGE FIRMS – A CASE STUDY IN VIETNAM

Abstract

Purpose: The aim of this study is to examine the relationship between capital structure and performance of securities brokerage firms. Theoretical framework: The study inherits previous studies on the relationship between capital structure and performance to reason, test and determine the optimal capital structure. Design/methodology/approach: Using Qualitative Research (Synthetic Methods; Statistical methods, description; Inductive and interpretive methods) and quantitative research methods (linear regression methods). Findings: The results identified an inherent structure that significantly affects performance through the variables: (1) Financial leverage of a stockbroker (FL) and (2) Brokerage company size (Siz). Research, Practical & Social implications: The study provides a number of discussions and evaluations on the important role of decision making on optimal capital structure for securities brokerage service companies, in addition to recommendations on financial solutions to improve operational efficiency for companies. Originality/value: Through the study of 105 securities brokerage companies, corresponding to 1,314 observations in the period 2003 - 2021.