Doan Thanh Ha1
, Hoang Thi Thanh Hang2
, Nguyen Thi Ngoc Nga3

ABSTRACT

This study analyzes on impact of the capital structure to financial performance of small and medium enterprises (SMEs) in Vietnam. The study surveyed data table of 1,885 enterprises for the period of 2006 to 2014, with the combination OSL, REM, FEM. The study found that the leverage has a direct relationship with the financial performance of a company. However, short-term debt has a lower impact on financial performance than the longterm debt. In addition, in terms of macroeconomics, only inflation has a direct relationship with financial performance, while GDP growth has no relation with financial performance. Keywords: Capital structure, financial performance, small and medium enterprises (SMEs).