| dc.description.abstract | This study examines the correlation between firm structure and cash holdings
by investigating the differences in the diversified and focused business structures of
non-financial corporates listed on Ho Chi Minh Stock Exchange (HOSE). The scope of
this research is roughly 355 non-financial firms, with the total of 984 firm-year
observations, in the timeframe of 2017 to 2019 so that it can reflect a practical vision of
the business operations taking place in Vietnam. To analyze this relationship, the
amount of cash holdings is measured as a dependable variable, which is the ratio of the
total of cash and marketable securities to total assets, while the firm structure is
determined as a dummy variable indicating whether the business structure is diversified
or focused. Moreover, this study also takes into consideration other factors previously
stated to have influence on firm cash holdings, which includes the firm size, growth
opportunities, net working capital, operating cash flow, cash flow risk, leverage, capital
expenditure, and dividend payments. The findings of the study are constructed through
the t-test method and running regression models, such as the Ordinary Least Square
model and the Fixed-effect model. The research has noticed an inverse correlation
between firm structure and cash holdings, which can be interpret that diversified firms
tend to hold less cash than the focused firms. According to the findings of the study, the
implications on how business managers should regulate the optimal financial decisions
for maintaining and developing the business performance have been constructed. | en_US |
