A Bayesian Approach to Determinants of Capital Structure of Listed Construction Firms in Vietnam

This study aims to find out the factors affecting the capital structure of construction enterprises listed in Vietnam Stock Exchange in the period from 2014 to 2019. Using secondary data from 94 construction enterprises listed, including 472 observations with Bayesian regression technique to find out the factors affecting the overall debt ratio of enterprises. Regression results show that there are 6 important factors affecting capital structure which are enterprise size (SIZE), liquidity (LIQ), profitability (ROA), corporate income tax rate (TAX), age of the company (AGE) and growth opportunity (GROW). From there, business managers can refer to the research results to make decisions on capital structure, ensuring that it is consistent with the development goals of enterprises in the construction industry.