Secondly, we find that the correlation
coefficients are not sufficiently large to cause
collinearity problems among explanatory
variables. Thus, we can do multiple regression
analysis to build up the model of capital structure.
Thirdly, with respect to the correlation between
dependent variables and other explanatory
variables, we find that the debt ratio and shortterm
liabilities ratio are significantly correlated
with most of the variables, except firm growth. We
will examine and discuss the association between
capital structure and each determinant by testing
each hypothesis. With respect to the other shortterm
liabilities ratio, we find that it is significantly
correlated with such variables as business
relationship with banks, business networks, and
firm size. Thus, this kind of association will
display features of determinants related to
managerial behaviour towards the non-debt
portion of liabilities in Vietnamese SMEs.