Liabilities and the impacts on financial performance of the Vietnamese listed small and medium-sized enterprises. This research aims to examine the relationship between liabilities and firm performance of the Vietnamese listed small and medium-sized enterprises (SMEs). We explore a panel data set of 61 listed SMEs in Vietnam from 2011 to 2014 and apply random-effects models. | Journal of Economics and Development, , , December 2016, pp. 41-63 ISSN 1859 0020 Liabilities and The Impacts on Financial Performance of The Vietnamese Listed Small and Medium-Sized Enterprises Nguyen Thanh Lan Griffith University, Australia Email: Phan Hong Mai National Economics University, Vietnam Email: hongmaiktqd@ Bui Ba Khiem Hai Phong University, Vietnam Email: khiemdhhp@ Abstract This research aims to examine the relationship between liabilities and firm performance of the Vietnamese listed small and medium-sized enterprises (SMEs). We explore a panel data set of 61 listed SMEs in Vietnam from 2011 to 2014 and apply random-effects models to test whether the financing policy affects firm performance. It is found that leverage policy has a significantly positive impact on Tobin’s q and a negative impact on ROE of the listed SMEs. Moreover, nonfinancial variables including joint stock firm age and business areas of SMEs significantly influence their performances. Keywords: Liabilities; firm performance; Tobin’s q; ROE; SMEs. Journal of Economics and Development 41 Vol. 18, , December 2016 1. Introduction Further, different ways of using debt as a financial leverage lead to different performances of firms (Brigham and Daves, 2003). Small and medium-sized enterprises (SMEs) play an important role in economic development. This is a vulnerable group which forms a large part of the private sector in most countries (Clusel et al., 2013), particularly in developing ones like Vietnam. According to a 2013 report by the Vietnamese government, SMEs accounted for over 97 percent of total enterprises nationwide, about 50 percent of total employment and up to 40 percent of GDP (VCCI, 2013). Given the importance of SMEs, it is necessary to improve their business environment through adequate intervention so that they can perform better. In the context of Vietnam, enhancing the competitiveness of .
