The impact of financial deleveraging on investment efficiency of listed real estate firms in Vietnam
Published: August 10, 2026
Abstract
This study examines the impact of financial deleveraging on investment efficiency of 38 listed real estate firms in Vietnam during 2015 - 2025. Investment efficiency is measured using the Richardson (2006) model. Using FGLS estimation, the results show that higher leverage increases inefficiency, while deleveraging improves overall investment efficiency. However, the effect is asymmetric: it strongly reduces overinvestment but does not improve, and may even worsen, underinvestment. These findings reflect credit tightening conditions and the passive nature of deleveraging processes in Vietnam.
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