According to Thomas (2013), the success of a business is significantly determined by the way capital is mobilized and utilised. The amount of financial leverage may change across firms and/or time depending on the business culture, administration method, or the industry in which the business operates. In principle, there is no theoretically optimal level for the proportion of debt and equity (Modigliani and Miller, 1958). This research carried out with a panel data of 85 listed firms in HSX market during the period from 2006 to 2017 (financial sector will be excluded) and reveals that short term leverage is significantly positive correlated with business financial performance. | Effects of financial leverage on performance of listed firms in Ho Chi Minh stock exchange market
