International Journal of Engineering, Business and Management (IJEBM) ISSN: 2456-8678 [Vol-6, Issue-3, May-Jun, 2022] Issue DOI: https://dx.doi.org/10.22161/ijebm.6.3 Article DOI: https://dx.doi.org/10.22161/ijebm.6.3.2 www.aipublications.com Page | 17 Analysis of the Effect of Capital Structure on Businessperformance of Building Material Manufacturing Businesses Listed on the Stock Market of Vietnam Nguyen Thi Huyen Banking Academy, Vietnam Received: 20 April 2022; Received in revised form: 15 May 2022; Accepted: 22 May 2022; Available online: 27 May 2022 ©2022 The Author(s). Published by AI Publications. This is an open access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/) Abstract— The objective of this study is to analyze the effects of capital structure on business performance of construction materials manufacturing enterprises listed on the Vietnam Stock Exchange. The study uses data from 27 enterprises in the building material manufacturing industry listed on the HSX and HNX in the 10-year period from 2012 to 2021. The author analyzes the relationship between capital structure and efficiency. business and then offer solutions to build an appropriate capital structure for enterprises in the domestic building material manufacturing industry. Keywords— Capital structure, business performance, construction materials. I. INTRODUCTION Capital structure suitable to the characteristics of the enterprise is the top concern of managers because this is one of the important strategies to improve business efficiency as well as the competitiveness of the enterprise. The source of capital to finance the operation needs of an enterprise is formed from many different sources such as the owner's own capital, the issuance of additional shares, capital due to appropriation of suppliers, loans from banks. or issue corporate bonds. At different times of business activities, affected by seasonal factors, macro fluctuations or periodic changes in the industry cycle, managers need to consider changing the capital structure accordingly. to ensure that the cost of capital at this time is optimal. Compared with a bank loan, appropriating the partner's capital by late payment of goods can help businesses save a lot of interest costs. Meanwhile, many businesses choose to borrow from banks to benefit from tax shields. Therefore, for any manager, in order for a business to perform well, it must know how to balance its capital structure according to its business lines, take advantage of the cost of capital to maximize benefits. Thereby, choosing the optimal capital structure suitable for the business is extremely important, especially the construction material manufacturing enterprises in the environment of a developing country like Vietnam because of the construction needs. Civil and infrastructure real estate in Vietnam is quite high, but the receivables turnover is quite long, so an appropriate capital structure is needed for enterprises in the construction material industry to raise capital. money in can be regular to ensure cash out and outflow can be minimal. II. CONCEPTS According to Ahmad et al (2012), “Capital structure is the ratio between debt and equity in the capital of the enterprise to finance production and business activities” [1]. Sharing the same point of view as Ahmad, Pourahajan & Malekian (2012) also argue that capital structure is the mixed financial source of an enterprise consisting of debt and equity that make up the assets of the enterprise. According to Professor Nguyen Thanh Do, the definition of business performance: “Business performance is a category that reflects the level of use of resources to achieve defined business goals. Only business enterprises aim at profit maximization and therefore need to evaluate business performance” [2]. In short, the business performanceof an enterprise is an economic