Analyzing the effect of capital structure on sales growth: A case of listed transport enterprises in Vietnam

In the current context of Vietnam's economy gradually recovering and growing after the Covid-19 pandemic, the transportation industry plays a crucial role in the supply chain and circulation of goods. It is important for listed transport enterprises to carefully consider capital structure, as it not only affects financial capacity but also impacts sales growth. This study examines the correlation between capital structure and sales growth of listed transport enterprises in Vietnam from 2019 to 2022. The sample consists of 98 transport enterprises, and data was collected from their financial statements. The fuzzy-set Qualitative Comparative Analysis (fsQCA) method was utilized to determine the relationship between variables representing capital structure (such as total debt to equity ratio, short-term debt to total assets ratio, long-term debt to total assets ratio, and total debt to total assets ratio) and sales growth. The findings indicate that capital structure has a significant impact on sales growth. Additionally, the study reveals that the short-term and long-term debt ratios have both positive and negative effects on the sales growth of listed transport enterprises in Vietnam. These results provide valuable insights for managers in making informed decisions regarding the optimal capital structure for maximizing sales growth in the transportation industry in Vietnam