Debt-to-Assets Ratio and Earnings Per Share: Evidence from Listed Construction Firms

This study looks at the relationship between profits per share (EPS) and the debt-to-assets ratio (DAR) for construction companies that are listed on the Hanoi Stock Exchange in Vietnam. The study uses pooled ordinary least squares (OLS), fixed-effects, random-effects, and generalized least squares (GLS) estimators to evaluate the connection between financial leverage and shareholder profitability using 225 firm-year observations from 45 firms. Insufficient evidence of a substantial linear association between DAR and EPS is provided by the results, which consistently show positive but statistically insignificant DAR coefficients across all regression parameters. These findings imply that the debt-to-assets ratio by itself provides little explanation for shareholder profits in the sample under study. When assessing business performance, the study emphasizes the significance of taking operating profitability, financing costs, and firm-specific financial features into account. The results should be regarded with caution due to the parsimonious model formulation and irregular panel configuration. More financial factors and more thorough longitudinal data should be included in future studies.