| dc.description.abstract | The study is aimed to examine the impact of leverage on firm‟s investment decision through the sample data of over 265 non- financial listed firms in HO CHI MINH stock exchange during the five consecutive years from 2010 to 2014. Three models for panel data including Pooled OLS, Fixed Effect Model and Random Effect Model are taken into consideration to choose the most suitable one. Under many previous literature reviews, Fixed Effect Model is the optimal one to run regression model, which brings the most precise approximation among three models. More importantly, the study broadens the knowledge of the impact of leverage on investment in terms of growth opportunities. The sample is divided into two sub-samples, namely low growth firms and high growth firms. Due to the difference in characteristic of each type of firms, the further purpose of this study is to test whether the difference of effect of leverage on investment decision exists or not.
The results give support to three main findings. Firstly, the leverage has statistically negative impact on investment in the whole sample consisting of 265 non- financial listed companies in Ho Chi Minh stock exchange during five years from 2010 to 2014. Secondly, the leverage is negatively and statistically significant correlated to the investment in both high growth firms and low growth firms. Finally, it gives evidence that the negative effect of leverage on investment in low growth firms is much stronger than the effect of leverage on investment in high growth firms. | en_US |
