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Does Financial Leverage Fit Firm Performance During the COVID-19 Pandemic: Evidence From Vietnam

Author

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  • Quoc Trung Nguyen Kim

    (University of Finance - Marketing, Vietnam)

Abstract

The paper aims to determine the effect of financial leverage on the performance of Vietnamese small and medium enterprises during the COVID-19 pandemic. Based on the agency theory and pecking order theory, combined with the quantitative method, the financial leverage and COVID-19 are statistically significant factors affecting the performance of small and medium enterprises in Vietnam. Significantly, the author emphasizes that financial leverage has a positive effect on the performance during the pandemic. Furthermore, there is the existence of homoscedasticity and no-autocorrelation in the model when using feasible general least squares. It confirms that the model estimation is unbiased and reliable.

Suggested Citation

  • Quoc Trung Nguyen Kim, 2022. "Does Financial Leverage Fit Firm Performance During the COVID-19 Pandemic: Evidence From Vietnam," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 13(1), pages 1-20, January.
    • Handle: RePEc:igg:jabim0:v:13:y:2022:i:1:p:1-20
    as

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    References listed on IDEAS

    as
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