| dc.description.abstract | Corporate cash holdings have been widely studied in the last decade. It is evident that many researches focusing on this topic come from both developed markets and emerging markets. However, very few studies with respect to the impact of holding too much cash or too little cash have been conducted in Vietnam. Therefore, this research objects to investigating the relationship between cash holdings and firm value, the determinants of corporate cash holdings and the impact of deviation from optimal cash level on firm value. The selected sample encompasses 84 manufacturing companies, which are listed on Ho Chi Minh Stock Exchange during the period of five years from 2010 to 2014. The finding implies that there is a non – linear (or concave) relationship between cash holdings and firm value. Moreover, firm value is positively correlated with leverage and firm size respectively. However, relation between growth opportunities and its value are insignificant. Besides, the study indicates that out of six factors that was investigated, only leverage, liquidity and bank debt constitute significant determinants of cash holdings. Last but not least, we have also confirmed that the deviation from optimal cash level can affect firm value negatively. | en_US |
