Business Analytics and Financial Leverage Optimization: Empirical Evidence from Vietnamese Corporate Debt Decision-Making

Abstract

This study examines the influence of business analytics capabilities on corporate financial leverage optimization within the Vietnamese business environment. Utilizing a comprehensive panel dataset of 847 Vietnamese publicly listed firms spanning 2000-2017, this research employs advanced econometric methodologies, including fixed effects estimation and dynamic panel data analysis through the Generalized Method of Moments (GMM) approach. The analysis reveals that firms with enhanced business analytics capabilities demonstrate significantly improved debt-to-equity ratios, with a one-standard-deviation increase in analytics sophistication associated with a 12.7% reduction in leverage inefficiencies. The findings indicate that business analytics facilitates superior debt capacity assessment, optimal capital structure determination, and enhanced financial risk management. Furthermore, the study demonstrates that these effects are particularly pronounced among medium-sized enterprises and technology-intensive sectors within Vietnam's emerging market context. The research contributes to the growing literature on digital transformation in corporate finance by providing empirical evidence of analytics-driven financial optimization in emerging economies. These findings have significant implications for corporate financial management practices, regulatory policy development, and the strategic deployment of analytical technologies in developing market contexts.