| dc.description.abstract | This study investigates the leverage’s effect on decision of investment by
businesses that use Vietnamese companies' panel information. This paper examines
the influence of economic leverage on decision of corporate on investment of
companies using the information panel of Vietnamese companies. We collected data
from 349 HOSE companies, from 2014 to 2018. These results are supported by
agency cost theories of corporate leveraging firms as regards the incentive to
overinvest and the incentive to underinvest, which indicate that leverage is a major
disciplinary function in businesses whose low growth.
This study performs the F-test, Lagrangian Multiplier Test along to the
Hausman Test to find the most suitable model. The test for heteroscedasticity,
autocorrelation and robustness test are also performed. The finding shows that
leverage impacts negatively on investment decision. Finally, compared with empirical
articles, the leverage is considerably more sensitive for corporates whose high growth
level and not for low-growth corporates on investment policies by using the
instrumental variable to solve the endogeneity problem. | en_US |
