Macroeconomic Uncertainty and Cash Holdings of Top 50 Listed Firms in Vietnam Stock Exchange

Authors

  • Van Dung Ha Banking University Ho Chi Minh City, Vietnam

Abstract

This study investigates the impact of macroeconomic uncertainty on cash holdings of top 50 listed firms in Vietnam Stock Exchange. The average of natural logarithm of inflation rate, change in exchange rate, deficit to GNP, and external debt to GNP ratio is used for macroeconomic uncertainty while the ratio of cash and cash equivalent to total assets measures firm cash holdings.Using a dataset of 300 observations from top 50 listed firms in both Ho Chi Minh City Stock Exchange and Hanoi stock Exchange from 2013-2018, the paper employs the basic quantitative methods of Pooled Ordinary Least Squared, Fxed effects model, and Random effects model for analysis. The results indicate that higher macroeconomic uncertainty may lead to higher cash holdings of listed firms in Vietnam Stock Exchange. Some other determinants of firm cash holdings can be named as firm size, the ratio of market and booked value of firm, cash flow, net working capital, firm investment, leverage, and firm dividend. One macroeconomic indicator (the growth rate of money supply) is also found to have positive impacts of cash holdings of firms in Vietnam Stock Exchange.

Downloads

Published

2020-06-04

How to Cite

Dung Ha, V. . (2020). Macroeconomic Uncertainty and Cash Holdings of Top 50 Listed Firms in Vietnam Stock Exchange. Journal of Reviews on Global Economics, 9, 224–231. Retrieved from http://lifescienceglobalca.com/index.php/jrge/article/view/8132

Issue

Vol. 9 (2020)

Section

Articles

License

Policy for Journals/Articles with Open Access

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work

Policy for Journals / Manuscript with Paid Access

Authors who publish with this journal agree to the following terms:

  • Publisher retain copyright .

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .