Purpose: This study investigates the impact of leverage deviation on the cost of equity under the specifically mentioned condition in ASEAN-5 considering the global financial crisis and the sensitivity of the cost of equity on leverage deviation. Design/methodology/approach: This study employs...

We examined the adjustment speed of Vietnamese firms’ capital structures using a partial adjustment model. We also analyzed whether firms, depending on their characteristics, primarily use debt or equity to finance new investments. The study results revealed that adjustment speed is very slow...