The Determenants Influencing Cash Holdings of Non-Financial Firms in Vietnam

Abstract

The purpose of this study was to investigate the factors influencing the cash holdings of non-financial firms in Vietnam. The study uses a sample of 337 non-financial companies that have issued securities to the public and traded on the Ho Chi Minh City Stock Exchange, Hanoi Stock Exchange, and Unlisted public company market (UPCOM) during the period spanning 2015 to 2021 to explore the additional impact of two new macroeconomic variables, namely the world uncertainty index and Vietnam uncertainty index. Our findings demonstrate that Vietnam's uncertainty index, return on assets, dividend policy, and net cash flow positively impact the cash holding ratio. In contrast, the effects of financial leverage, non-cash working capital, and firm size are adverse.