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Determinants of Working Capital Requirement: Evidence from Non-Financial Firms Listed on the Vietnam Exchange
| Content Provider | Semantic Scholar |
|---|---|
| Author | Cương, Nguyễn Thành Nhung, Nguyễn Thị Hồng |
| Copyright Year | 2017 |
| Abstract | The purpose of this study is to examine whether non-financial firms listed on the VietNam Exchange exhibit a target working capital requirement (WCR). The study also investigate the determinants of WCR and the speed with which firms can adjust toward their target WCR. Based on a sample of 314 non-financial firms listed on the VietNam Exchange during 2010–2015, Using the Generalized Method of Moments estimation, the study found that firms pursue target levels of WCR. However, the adjustment process is relatively slow with an adjustment coefficient of 0.4573. In addition, the results also show that the WCR increased significantly with increasing in the firm’s profitability. In contrast, the WCR decreases significantly with increasing in the size and fixed investment of the firm. From the results obtained, this study provides important implications to corporate financial managers in effective management of the WCR. |
| File Format | PDF HTM / HTML |
| Volume Number | 3 |
| Alternate Webpage(s) | https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/download/90/pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
