Capital Structure and Firm Performance: Case Study: Listed Companies in Hochiminh Stock Exchange

1. INTRODUCTION ........................................................... 3 DESCRIPTION ................................................................. 3 PURPOSE.......................................................................... 4 PROFESSIONAL INTEREST......................................... 4 2. 3. 4. LITERATURE SEARCH

In order to complete the study, research questions were developed with specific variables in order to determine the results

For the effect will be measured in term of rate of VAP via an experimental study, this data collecting method is called experimental methodology (Guba, 1990). Therefore, a positivism paradigm will be more appropriate for this proposal.

1 Background of the Problem .................................................................................. 1 Statement of the Problem...................................................................................... 3 Purpose of the Study ............................................................................................. 3 Research Questions and Hypotheses .................................................................... 6 Definition of Terms............................................................................................... 8 Significance of the Study ...................................................................................... 9 Limitations of the Study...................................................................................... 10 Organization of the Thesis .................................................................................. 11 2. REVIEW OF LITERATURE ............................................................................. 13 Introduction......................................................................................................... 13 Origins and Evolution of Gambling in the United States ................................... 13 Pathological and Problem Gambling Overview ................................................. 18 Brief History ...........................................................................................

1.3 Research Objectives and Question . . . . . . . . . . . . . . . . . . . . . . 7

This chapter generally discusses the background studies, problem statement, objectives, scope of the study, output to be predicted and benefit of the research.

The team would like to express our gratitude to Mr Redmund Law, lecturer, School of Singapore

Capital Structure: "Capital structure is the manner in which a firm's assets are financed; that is, the right-hand side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm debt, preferred stock, and common equity." (Capital Structure Decision, 2002)

Throughout this paper I will attempt to give financial advise to a business that will have direct impact on operations and the ability to successfully compete in the marketplace. Some of the tasks involved in delivering sound advice to this business is the first task that consist of describing the advice that I would give to the client for raising business capital using both debt and equity options in today’s economy, while outlining the major advantages and disadvantages of each option. The second task involves the attempt to summarize the advice that I would give the client on selecting an investment banker to assist the business in raising this capital. The third and final task entails the

Halfords capital risk management policy details that Halfords aims to maintain an optimal capital structure and that operating capital is managed by ratios. It details how those ratios are calculated and their value. The policy also details how Halfords might adjust its capital structure (adjusting dividends, returning capital to shareholders, issuing shares and selling assets). The annual report does not specify an optimal capital structure. This allows the firm to set an optimal structure for its needs rather than be tied to an inflexible target. This is consistent with Modigliani and Miller 's Capital structure Irrelevance Theory (Arnold, 2013, p.772) and other studies which suggest there is not a strong link between capital structure and growth (Bevan & J. Danbolt 2004). If the board wishes to adjust the capital it will face some limitations. The firm could issue new shares to adjust the equity to debt weighting. This however appears to be a method the board wishes to avoid. The firm could buy back shares using internal or external funds. Retained earnings amount to only 25% of current market, limiting it as source of funds if dividend levels are to be maintained. The board has shown a preference maintain dividend levels over varying profits it is unlikely they would choose this method. Halfords could raise debt to repurchase share, and shareholders may support this as it would increase both EPS and share price, it might also

I would like to thank my supervisor, Sir Wan Khairul for his invaluable advice and contributions in completing this work. It is my pleasure to have an advisor to guide me along the research.

2 Research question ................................................................................................................... 14 Motivation of the study....................................................................................................... 14 Purpose of the article .......................................................................................................... 14 Relevance of the study ........................................................................................................ 15 Method .................................................................................................................................... 15 Research design................................................................................................................... 15 Data collection..................................................................................................................... 15 Data analysis........................................................................................................................ 15 General approach to management accounting ...................................................................... 15 Theory ..................................................................................................................................... 16 Results

3.1 Methodology ............................................................................................................................................................... 21 3.2 Research Design and Method ............................................................................................................................... 21 3.2.1 Primary Research ................................................................................................................................................................. 21 3.2.2 Secondary Research ............................................................................................................................................................ 22 3.2.3 Research Subjects ................................................................................................................................................................. 22 3.2.4 Research Subject #1: Large Telecommunication Company (LTC) ................................................................. 22 3.2.5 Research Subject #2: A Mid-Sized Securities Firm (MSF) .................................................................................. 23 3.3. Research Strategy

This research is titled as the impact of liquidity and capital structure on the financial performance of Cement sector firm. Capital structure and liquidity both play a vital role in growth and profitability of the firm. The data of fifteen cement sector firms were randomly analyzed, for the period of 2008 to 2014. The statistical approaches i.e. correlation, fixed effect, random effect and hausman tests were applied. The results indicated that all capital structure variables, i.e. Debt to equity, debt ratio, funded capital ratio and Funded debt ratio has negative relationship with firm financial performance of these selected cement sector firms. The results also indicated that liquidity proxies, i.e. quick ratio and current ratio have significant positive impact on the financial performance of these cement sector firms. On the bases of the findings of this study it is suggested that these firm’s manager should take care of its capital structure proxies as it negatively impacting its financial performance. On the bases of findings, it is also advised that these managers should further improve the mechanism of liquidity.

Preface ............................................................................................................................................ 3 Management Summary .................................................................................................................. 4 Background ..................................................................................................................................... 5 Scope and Objectives ...................................................................................................................... 8 Work