Article: Capital structure decisions and business excellence: benchmarking financial performance in Vietnamese listed companies Journal: International Journal of Business Excellence (IJBEX) 2026 Vol.38 No.5 pp.29 - 46 Abstract: This study investigates how capital structure decisions affect business performance and financial excellence among 184 non-financial firms listed on Vietnam's HOSE and HNX exchanges during 2019-2023. Using feasible generalised least squares (FGLS) regression to correct for heteroskedasticity and autocorrelation, firm performance is assessed through return on assets (ROA), return on equity (ROE), and Tobin's Q. Capital structure is measured by debt-to-assets, total debt, short-term debt, and equity-to-capital ratios. Results show that higher debt-to-assets ratios significantly reduce ROA and Tobin's Q, consistent with financial distress theory, while total debt positively affects ROE, indicating optimal leverage enhances shareholder returns. Short-term debt weakens profitability, while earnings volatility shows positive effects, indicating firms' adaptive capabilities during uncertainty. The findings suggest Vietnamese firms should maintain moderate leverage for financial flexibility. This study contributes to business excellence research by providing empirical benchmarks for financial resilience and value creation in emerging markets. Inderscience Publishers - linking academia, business and industry through research

Title: Capital structure decisions and business excellence: benchmarking financial performance in Vietnamese listed companies

Authors: Duy Hung Nguyen; Tuan-Anh Truong

Addresses: Internal Audit Department of Vietcombank Securities (VCBS), 72 Tran Hung Dao, Cua Nam Ward, Ha Noi, Vietnam ' Faculty of Business Administration, National Economics University, 207 Giai Phong Street, Bach Mai Ward, Hai Ba Trung District, Ha Noi, Vietnam

Abstract: This study investigates how capital structure decisions affect business performance and financial excellence among 184 non-financial firms listed on Vietnam's HOSE and HNX exchanges during 2019-2023. Using feasible generalised least squares (FGLS) regression to correct for heteroskedasticity and autocorrelation, firm performance is assessed through return on assets (ROA), return on equity (ROE), and Tobin's Q. Capital structure is measured by debt-to-assets, total debt, short-term debt, and equity-to-capital ratios. Results show that higher debt-to-assets ratios significantly reduce ROA and Tobin's Q, consistent with financial distress theory, while total debt positively affects ROE, indicating optimal leverage enhances shareholder returns. Short-term debt weakens profitability, while earnings volatility shows positive effects, indicating firms' adaptive capabilities during uncertainty. The findings suggest Vietnamese firms should maintain moderate leverage for financial flexibility. This study contributes to business excellence research by providing empirical benchmarks for financial resilience and value creation in emerging markets.

Keywords: capital structure; financial performance benchmarking; business excellence; performance measurement; emerging markets; Vietnam; financial resilience; feasible generalised least squares; FGLS.

DOI: 10.1504/IJBEX.2026.151277

International Journal of Business Excellence, 2026 Vol.38 No.5, pp.29 - 46

Received: 02 Nov 2025
Accepted: 01 Dec 2025
Published online: 20 Jan 2026 *

Title: Capital structure decisions and business excellence: benchmarking financial performance in Vietnamese listed companies

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