Corporate leverage and U.S.-China tensions: evidence from Vietnam
Abstract
This study examines the effects of the tensions between the U.S. and China on corporate leverage of Vietnamese firms from 2017 to 2023. The research findings reveal a negative effect of U.S.-China tensions on both overall and short-term leverage. Additionally, the effects of U.S.-China tensions on Vietnamese firms’ leverage are more pronounced for financially constrained firms, firms from specific industries, or during the COVID-19 pandemic period. Based on the main findings, policymakers should take into account the elements of U.S.-China tensions when designing policies to help mitigate the negative effects of these tensions on the credit and financing conditions of Vietnamese enterprises.
Fields of Study & Subjects
Vietnamese History and Culture Studies
Corporate Finance and Governance
China's Socioeconomic Reforms and Governance
Publication details
- Journal / source
- Cogent Economics & Finance
- Publisher
- Informa UK Limited
- Volume
- 14
- Issue
- 1
- Publication date
- 21 January 2026
- Language
- EN