Determinants of corporate cash holdings: evidence from Vietnamese materials firms

Tóm tắt

This paper investigates factors affecting cash holdings of materials firms listed on Vietnamese
stock exchanges. The study shows that leverage, profitability, cash conversion cycle, cash
flows, and growth opportunities significantly affect the level of cash holdings of Vietnamese
materials companies by analyzing data collected from 51 companies over seven years
(2013-2019) and using FGLS procedure on fixed effect estimation. This study adds more
insights in the field of liquidity management in general and cash management in particular
by determining factors influencing cash holdings. Outcomes from this research would help
managers, investors, and consultants make corporate governance decisions.