International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 11, Issue 10 (October 2024), Pages: 186-195

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 Original Research Paper

Factors influencing the liquidity in Vietnamese listed companies

 Author(s): 

 Duong Thuy Doan 1, Thu Thi Minh Vu 1, *, Linh Thuy Nguyen 2

 Affiliation(s):

 1School of Accounting and Auditing, National Economics University, Hanoi, Vietnam
 2Faculty of Finance and Banking, Thuongmai University, Hanoi, Vietnam

 Full text

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0001-5793-0653

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2024.10.021

 Abstract

This study examines the factors that affect liquidity in companies listed on the Vietnam Stock Exchange. The factors are divided into two main groups: those related to corporate governance and other additional factors. To measure a company's liquidity, we use different indicators such as the cash ratio, quick ratio, and cash conversion cycle (CCC). To test the hypotheses and explain how these factors relate to liquidity measures, we develop three econometric models. Our dataset covers the period from 2017 to 2022 and includes companies listed on the Ho Chi Minh City Stock Exchange. The final sample consists of 359 companies, with 1,638 observations. The results show that in Vietnamese listed companies, both the cash ratio and quick ratio have positive relationships with board size, board independence, and company performance. On the other hand, the net operating cycle is negatively related to board size, company size, board independence, and profitability. This suggests that larger companies with bigger boards and more independent members are better at managing their capital efficiently. However, there is no clear evidence of a relationship between company age and liquidity or between CCC and profitability. These findings provide useful insights into the factors influencing liquidity in Vietnamese listed companies, with important implications for financial management strategies.

 © 2024 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Liquidity, Corporate governance, Cash ratio, Board size, Profitability

 Article history

 Received 17 April 2024, Received in revised form 3 September 2024, Accepted 11 October 2024

 Funding

This research is funded by the National Economics University, Hanoi, Vietnam.

 Acknowledgment

The authors would like to send our thanks to anonymous reviewers for their supportive comments and suggestions.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Doan DT, Vu TTM, and Nguyen LT (2024). Factors influencing the liquidity in Vietnamese listed companies. International Journal of Advanced and Applied Sciences, 11(10): 186-195

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 Figures

 Fig. 1 

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 

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