Determinants of corporate cash holding - A study on Ho Chi Minh stock exchange
Abstract
Corporate cash holding has been studied by academics in over the world. There are several studies with the same topic conducted in United States, France and Japan, etc. However, there is less research that investigates the impacts on corporate cash holding in the emerging market such as Asian area. Therefore, this research concentrates on examining the relationship of cash holdings and some variables such as leverage, net working capital, cash flow, etc on Ho Chi Minh Stock Exchange (HOSE) with VN-index. Particularly, it discusses the impact on corporate cash holding by separate the whole sample into two sub samples. The data sample includes 147 companies which are collected from financial statement of listed firms in the period of 2010-2014. The result shows that investment opportunity, net working capital dividend payout ratio and effective tax rate affect on the cash holdings.