Effect oF Earning Quality on the Cash Holding: Case Study of Enterprises Listed on the Vietnam Stock Market
Abstract
Abstract: This paper investigates the relationship between earning quality and cash holdings. The study uses the multivariate regression method FGLS to handle the phenomenon of self-correlation and variance change. The study sample consisted of 403 non-financial companies listed on Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange between 2014-2019 with 2418 observations. Research results indicate that companies with low earning quality hold higher cash. Overall, the author's evidence shows not only that cash balances are positively affected by the presence of greater information asymmetry but also by the existence of low levels of management oversight and the occurrence of losses, both of which reduce the importance of earning quality as a factor determining cash levels.
Copyright (c) 2023 Asean International Sandbox Conference
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Contents and information publish in the sandbox conference proceedings is the author (s)'s opinion and must be the direct responsibility of the author (s). The Sandbox editorial board has no reponsibility to agree or partly or joinly agree with the publishing contents by the author (s).
Articles, information, contents and pictures presented in this sandbox conference proceedings is copyright. Formal writing to request for reuse is required.
