VNUHCM Journal of

Economics, Business and Law

An official journal of Viet Nam National University Ho Chi Minh City, Viet Nam

ISSN: 2588-1051
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Factors affecting cost of debt of companies listed on Ho Chi Minh S tock Exchange

Nguyen Hai Yen 1, *
Ngo Phu Thanh 1
Bui Ngoc Loc 1

  1. University of Economics & Law, VNUHCM, Vietnam
Correspondence to: Nguyen Hai Yen, University of Economics & Law, VNUHCM, Vietnam. Email: [email protected].
Volume & Issue: Vol. 2 No. 3 (2018) | Page No.: 71-79 | DOI: 10.32508/stdjelm.v2i3.521
Published: 2019-01-20

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Copyright © 2018 by the author(s).

Copyright The Author(s) 2018. This article is published with open access by Vietnam National University, Ho Chi Minh city, Vietnam. This article is distributed under the terms of the Creative Commons Attribution License (CC-BY 4.0) which permits any use, distribution, and reproduction in any medium, provided the original author(s) and the source are credited. 

Abstract

Cost of debt is one of factors that firms consider when making their financing decision. Firms use more debt for their operating business in case of lower debt cost. Therefore, determing the impact factors on cost debt is interested in by firms and scholars. This study uses samples of 313 listed firms on Ho Chi Minh Stock exchange over period 2012 to 2017. The finding is that foreign ownership, state ownership, and financing leverage adversely affect on debt cost, while average 12-month interest positively impacts on the cost of debt.

Keywords: Cost of debt non-finance listed firms state ownership foreign ownership financing leverage average 12-month interest

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