The effect of cash flow sensitivity on enterprises cash holdings evidence from vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM ERASMUS UNVERSITY ROTTERDAM INSTITUTE OF SOCIAL STUDIES THE NETHERLANDS VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS THE EFFECT OF CASH FLOW SENSITIVITY ON ENTERPRISES’ CASH HOLDINGS: EVIDENCE FROM VIETNAM BY LE KHA TU MASTER OF ARTS IN DEVELOPMENT ECONOMICS HO CHI MINH CITY, December 2017 UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDS VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS THE EFFECT OF CASH FLOW SENSITIVITY ON ENTERPRISES’ CASH HOLDINGS: EVIDENCE FROM VIETNAM A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS By LE KHA TU Academic Supervisor: Dr NGO MINH HAI HO CHI MINH CITY, December 2017 ABSTRACT Cash holdings have long been a particular concern when studying the financial policies of enterprises The global financial crisis in 2008 has impacted many economies in the world; Vietnam was one of the few emerging economies in Southeast Asia being less affected by the crisis However, the crisis has negative impacts on the macroeconomy of Vietnam Low GDP growth rates, booming inflation and escalating interest rates made Vietnamese enterprises’ situation more difficult Along with the Central bank's tightening monetary policy to curb inflation, commercial banks simultaneously restricted the issuance of large loans, which were more difficult for firms to access more capital In that context, the efficient use of cash holdings is the key to business success To use effectively the cash flow of the firms, it is important to study the factors that affect the cash holdings of firms Thus, the author chose the topic "The effect of cash flow sensitivity on enterprises’ cash holdings: Evidence from Vietnam" to study the effect of financial factors on firms’ cash holdings in Vietnam The main objective of the study was to find empirical evidence on the effects of cash flow sensitivities on cash holdings in the world and to seek evidence of this in Vietnam The study uses data from financial statements of 274 non-financial firms listed on Hanoi Stock Exchange (HNX) and Hochiminh Stock Exchange (HOSE) between 2009 and 2015 In Vietnam, cash flow sensitivities have a real impact on the cash holdings of firms, which is greater for firms with negative cash flows The financial constraint also affects the relationship between cash flow sensitivity and cash holdings, but the agency problem does not show any significant influence on this relationship Based on the results of the study, the paper offers some recommendations to help businesses make better cash management options At the same time, the paper also outlines some of the remaining limitations of research and future research Keywords: Cash flow sensitivity, cash holdings, financial constraint, agency problem, asymmetric i ACKNOWLEDGEMENT The first word I would like to send my sincere thanks to all Vietnam – Netherlands Programme professors, who have taught and imparted me valuable knowledge during the time of study and research, enabling me to complete this thesis You all not only gave me the knowledge but also created the best conditions for me in the data collection and thesis writing process Friendly and kind Vietnam – Netherlands Programme staff were always willing to help me on physical facilities as well as references I would like to sincerely and gratefully thank Dr Ngo Minh Hai, my supervisor, for his great assistance, principal and valued advice, guiding me from the smallest steps to help my thesis complete I would like to express my deep gratitude to all my friends, families, who have always been with me, cheered and supported me all the time Despite all the effort, due to limited knowledge and time, the problems presented in this thesis will certainly have many shortcomings I look forward to receiving feedback, evaluations and comments from the professors ii CONTENTS CHAPTER 1: INTRODUCTION 1.1 The problem statement 1.2 The research objectives 1.3 Research contribution 1.4 The thesis structure CHAPTER 2: LITERATURE REVIEW 2.1 2.2 Introduction Studies on the effects of cash flow sensitivity on cash holdings 2.2.1 The impact of change in cash flow on cash holdings 2.2.2 The relationship between financial constraints and cash holdings of a company 2.3 Summary of previous findings CHAPTER 3: RESEARCH METHODOLOGY 13 3.1 The analytical framework 13 3.2 The econometric models 14 3.2.1 Model the effect of cash flow sensitivity on cash holdings 14 3.2.2 The effect of cash flow sensitivity on cash holdings is under financial constraints 15 3.2.3 The effect of cash flow sensitivity on cash holdings is in the agency problem 17 3.3 The data 20 3.4 Fixed Effects and Random Effects 20 3.5 GMM4 estimations 21 3.6 Expectations on research results 22 3.6.1 Effects of cash flow sensitivity on cash holdings 22 3.6.2 Effects of cash flow sensitivity on cash holdings under financial constraints 23 3.6.3 Effects of cash flow sensitivity on cash holdings under agency problem 23 CHAPTER 4: RESEARCH RESULTS 24 4.1 Data description 24 4.2 Regression results and discussions 28 4.2.1 Effects of cash flow sensitivity on cash holdings 28 4.2.2 Effects of cash flow sensitivity on cash holdings under financial constraints 37 4.2.3 Effects of cash flow sensitivity on cash holdings under agency problem 42 CHAPTER 5: CONCLUSIONS 45 5.1 Conclusions 45 5.2 Policy implications 46 5.3 Limitations 47 REFERENCE 49 APPENDIX 51 LIST OF TABLES Table 1: Sample statistics 24 Table 2: Variable description 25 Table 3: Compare the mean of variables 25 Table 4: Pearson and Spearman correlation coefficients 27 Table 5: The results of Almeida (2004) 29 Table 6: Estimation results of the model 31 Table 7: Results of the asymmetry sensitivity of cash flow 34 Table 8: Cash Flow and Cash of FPT Corporation for the period 2009 – 2015 .36 Table 9: The number of observations of companies by year divided into three categories 38 Table 10: The summary statistics for the cash holdings of the two groups of companies by the three classification criteria 39 Table 11: Estimation results for financial constraints 40 Table 12: Estimation results of the model for agency problem 43 CHAPTER 1: INTRODUCTION 1.1 The problem statements The 2008 financial crisis was the worst economic disaster since the Great Depression of 1929, having a strong impact on the world in general and Southeast Asia in specific However, Vietnam was one of the few economies that were less affected by the recession caused by this crisis Nevertheless, the GDP growth rates for seven consecutive years (from 2009 to 2015) were in low level, showing that the crisis still had negative impacts on Vietnamese economy Moreover, in the period of 2009-2015, Vietnam’s inflation was abnormal (a sudden increase to 19% in 2011 and then declining), bad debts became a serious problem and getting worse Vietnamese enterprises were directly affected by the crisis, the number of enterprises reporting losses was increasing and many businesses were forced to dissolve In that context, cash holdings were paid more attention, since cash management is the key to a success business as accessing capital markets is difficult For effective cash management, the first problem is what factors affect the firm's cash holdings Prior literature has widely studied the effects of cash flow on cash holdings and got certain conclusions Almeida et al (2004), Khurana et al (2006) found cash flow sensitivity was positive Meanwhile, Riddick and Whited (2009), Bao, Chan and Zhang (2012) found that cash flow sensitivity was negative The study of cash flow sensitivity of cash holdings may help firms proposing a better cash management model, thereby firms use cash more efficiently However, in Vietnam, the effect of cash flow sensitivity on cash holdings has yet to be studied extensively, and there are disputations on this problem in the world For this reason, the author chose the research topic "The Effect of Cash Flow Sensitivity on Cash Holdings: Evidence from Vietnam", examining whether or not the effect of cash flow sensitivity on cash holdings in Vietnamese enterprises 1.2 The research objectives The main purpose is examing the effect of cash flow sensitivity on cash holdings, the paper includes two basic objectives: - Examining the effect of cash flow sensitivity on cash holdings in Vietnamese enterprises - Verifying the nonlinear relationship between cash flow sensitivity and cash holdings To accomplish two research objectives, the paper will solve the following research problems: - Is there any evidence in the world about the effect of cash flow sensitivity on cash holdings? - Which method is appropriate to test the effect of cash flow sensitivity on cash holdings in Vietnam? - What factors affects the cash flow sensitivity on cash holdings? - What is the effect of cash flow sensitivity on cash holdings in case the firm has positive cash flow and negative cash flow? 1.3 Research contribution Research on the effect of cash flow sensitivities has a very important meaning, especially for firms Financially, cash flow sensitivity can represent a company's risk, because cash flow sensitivity is the level of change in the company's cash when cash flow changes If a company has high cash flow sensitivity, this can affect corporate financial policies such as dividends and capital structure A company with high cashflow sensitivity is difficult to maintain a capital structure with high debt ratios due to insecure liquidity and the company is hard to implement a good dividend policy when cash always has instability Thus, finding the impact of cash flow sensitivity can help firms understand how cash flow affects their cash holdings, so they can provide better cash management and better implementation of dividend payment and capital mobilization policies The results of the study will also contribute to the global debate on how cash flow sensitivity affects cash holdings 1.4 The thesis structure The research is organized in the following chapters: Chapter 1: Introduction This chapter presents the reasons for choosing topics, research objectives, research methods, research contribution and thesis structure Chapter 2: Overview of previous studies on the impact of cash flow sensitivity on cash holdings This chapter presents the results of the previous study on the effect of cash flow sensitivity on cash holdings, findings, arguments and limited issues in these studies Chapter 3: Research Methods This chapter will detail the research model, variables in the model, data as well as expectations about the research results Chapter 4: Research Results This chapter presents and discusses the results of the study on the effect of cash flow sensitivity on cash holdings of firms in Vietnam, the results of examination with financial constraints and agency problem Chapter 5: Conclusions and limitations of the study This chapter presents the contributions of the research, the next research direction, and the limitations Table 13: The FEM regression of the asymmetry sensitivity of cash flow Fixed-effects (within) regression Number of obs dcashholdi~s cashflow neg cf_neg q size expenditure acq dncwc shortdebt _cons Coef .1210979 -.0127748 -.1795355 0223553 0080676 -.0445392 0198643 0463297 -.0630573 -.0975989 Std Err .0477310 0186505 0956039 0088162 0022389 0194980 0128220 0061499 0257625 0294759 t 2.54 -0.68 -1.88 2.54 3.60 -2.28 1.55 7.53 -2.45 -3.31 P>|t| 0.011 0.493 0.061 0.011 0.000 0.022 0.122 0.000 0.014 0.001 sigma_u sigma_e rho 0.03943518 0.10760434 0.11840673 (fraction of variance due to u_i) = 1,913 [95% Conf Interval] 0274774 2147184 -.0493564 0238067 -.3670549 0079838 0050630 0396475 0036761 0124590 -.0827830 -.0062954 -.0052851 0450138 0342672 0583921 -.1135885 -.0125262 -.1554137 -.0397842 Table 14: The REM regression of the asymmetry sensitivity of cash flow Random-effects GLS regression dcashholdi~s cashflow neg cf_neg q size expenditure acq dncwc shortdebt _cons sigma_u sigma_e rho Coef .0739942 0024431 -.0970765 0241027 0002028 -.0462934 0165288 0443605 -.0371509 0010272 0.10729695 Number of obs Std Err .0313595 0168286 0792211 0054573 0013364 0180496 0110960 0059549 0119594 0176282 t 2.36 0.15 -1.23 4.42 0.15 -2.56 1.49 7.45 -3.11 0.06 P>|t| 0.018 0.885 0.220 0.000 0.879 0.010 0.136 0.000 0.002 0.954 = 1,913 [95% Conf Interval] 0125306 1354577 -.0305404 0354265 -.2523469 0581940 0134066 0347987 -.0024166 0028222 -.0816700 -.0109169 -.0052190 0382766 0326892 0560319 -.0605909 -.0137109 -.0335234 0355777 (fraction of variance due to u_i) Table 15: Hausman test for the asymmetry sensitivity of cash flow Coefficients -(b) (B) (b-B) sqrt(diag(V_b-V_B)) FE RE Difference S.E cashflow neg 0.1210979 -0.0127748 0.0739942 0.0024431 0.0471037 -0.0152179 0.0359837 0.0080399 cf_neg -0.1795355 -0.0970765 -0.0824591 0.0535175 q 0.0223553 0.0241027 -0.0017474 0.0069241 size 0.0080676 0.0002028 0.0078648 0.0017963 -0.0445392 -0.0462934 0.0017542 0.0073745 acq 0.0198643 0.0165288 0.0033355 0.0064252 dncwc 0.0463297 0.0443605 0.0019691 0.0015363 expenditure shortdebt -0.0630573 -0.0371509 -0.0259064 0.0228184 b = consistent under Ho and Ha; obtained from xtreg B = inconsistent under Ha, efficient under Ho; obtained from xtreg Test: Ho: difference in coefficients not systematic chi2(129) = (b-B)'[(V_b-V_B)^(-1)](b-B) = 28.96 Prob>chi2 = 0.0007 Table 16: The summary statistics for the cash holdings of the two groups of companies by KZ index Two-sample t test with equal variances Group Obs 1198 combined 720 1918 Mean diff 0.0399987 Std Err 0.0036949 Std Dev 0.1278890 [95% Conf 0.0327495 Interval] 0.0472479 0.0131804 0.0299313 0.0024115 0.0024963 0.0647075 0.1093243 0.0084460 0.0250356 0.0179148 0.0348270 0.0268183 0.0051200 0.0167769 0.0368597 mean(0) - mean(1) diff = Ho: diff = Ha: diff < Pr(T < t) = 1.0000 t degrees of freedom Ha: diff! = Pr(T > t) = 0.0000 = = 5.2379 1916 Ha: diff >0 Pr(T > t) = 0.0000 Table 17: The summary statistics for the cash holdings of the two groups of companies by WW index Two-sample t test with equal variances Group Obs Mean Std Err Std Dev [95% Conf Interval] 1442 0.0318695 0.0027967 0.1062005 0.0263835 0.0373555 combined diff 476 1918 0.0240599 0.0299313 0.0054181 0.0024963 0.1182093 0.1093243 0.0134135 0.0250356 0.0347063 0.0348270 0.0078096 mean(0) - mean(1) 0.0057778 t -0.0035218 = 0.0191410 1.3517 diff = Ho: diff = Ha: diff < Pr(T < t) = 0.9117 degrees of freedom Ha: diff! = Pr(T > t) = 0.1776 = 1916 Ha: diff >0 Pr(T > t) = 0.0883 Table 18: The summary statistics for the cash holdings of the two groups of companies by dividend payments Two-sample t test with equal variances Group combined diff diff Obs 447 Mean 1471 1918 = 0.0230670 Std Err 0.0047018 Std Dev 0.0994078 [95% Conf 0.0138265 Interval] 0.0323075 0.0320173 0.0299313 -0.0089503 0.0029231 0.0024963 0.0059025 0.1121127 0.1093243 0.0262833 0.0250356 -0.0205262 0.0377512 0.0348270 0.0026256 mean(0) - mean(1) Ho: diff = Ha: diff < Pr(T < t) = 0.0648 t = degrees of freedom Ha: diff! = = Pr(T > t) = 0.1296 -1.5164 1916 Ha: diff >0 Pr(T > t) = 0.9352 Table 19: The FEM regression of Equation by KZ index Fixed-effects (within) regression Number of obs dcashholdi~s cashflow neg cf_neg kz cf_kz kz_neg cf_kz_neg q size expenditure acq dncwc shortdebt _cons Coef .1362801 -.0199711 -.1654742 -.0040120 -.0553456 0164189 0138555 0222240 0082318 -.0434890 0205157 0449794 -.0593833 -.0990440 Std Err .0551653 0249498 1289291 0115686 0868666 0379558 1835539 0088329 0022453 0196350 0128379 0062447 0259284 0295891 t 2.47 -0.80 -1.28 -0.35 -0.64 0.43 0.08 2.52 3.67 -2.21 1.60 7.20 -2.29 -3.35 P>|t| 0.014 0.424 0.200 0.729 0.524 0.665 0.940 0.012 0.000 0.027 0.110 0.000 0.022 0.001 sigma_u sigma_e rho 04149648 0.10734093 0.13001762 (fraction of variance due to u_i) = 1,913 [95% Conf Interval] 0280776 2444826 -.0689083 0289661 -.4183589 0874105 -.0267030 0186790 -.2257278 1150366 -.0580285 0908663 -.3461714 3738825 0048988 0395491 0038278 0126357 -.0820017 -.0049764 -.0046649 0456962 0327310 0572279 -.1102399 -.0085267 -.1570808 -.0410071 Table 20: The FEM regression of Equation by WW index Fixed-effects (within) regression dcashholdi~s cashflow neg cf_neg ww cf_ww ww_neg cf_ww_neg q size expenditure acq dncwc shortdebt _cons sigma_u sigma_e rho Coef .1362801 -.0199711 -.1654742 -.0040120 -.0553456 0164189 0138555 0222240 0082318 -.0434890 0205157 0449794 -.0593833 -.0990440 04296784 10719000 13844064 Std Err .0497763 0279887 1247847 0144753 1146893 0380050 2011196 0088457 0022976 0195107 0128238 0061463 0258054 0311131 Number of obs t 1.79 -0.31 -0.57 -1.69 2.49 0.14 -2.26 2.39 3.74 -2.29 1.53 7.57 -2.62 -3.16 P>|t| 0.073 0.760 0.570 0.090 0.013 0.888 0.024 0.017 0.000 0.022 0.126 0.000 0.009 0.002 = 1,913 [95% Conf Interval] -.0083238 1869410 -.0634470 0463483 -.3156460 1738653 -.0529151 0038691 0610510 5109597 -.0691756 0799124 -.8483225 -.0593607 0037520 0384523 0040937 0131068 -.0828908 -.0063535 -.0055223 0447835 0344541 0585651 -.1183531 -.0171223 -.1592816 -.0372294 (fraction of variance due to u_i) Table 21: The FEM regression of Equation by Dividend payments Fixed-effects (within) regression dcashholdi~s cashflow neg cf_neg div cf_div div_neg cf_div_neg q size expenditure acq dncwc shortdebt _cons sigma_u sigma_e rho Coef .0917745 -.0362610 -.2070181 -.0134764 0354172 0346078 0485026 0234374 0085477 -.0437083 0196404 0462365 -.0637630 -.0943299 04296784 10735988 13407968 Number of obs Std Err .0928646 0316274 1833230 0128440 0956360 0391068 2035875 0088697 0022836 0195424 0128309 0061846 0258532 0306184 t 0.99 -1.15 -1.13 -1.05 0.37 0.88 0.24 2.64 3.74 -2.24 1.53 7.48 -2.47 -3.08 P>|t| 0.323 0.252 0.259 0.294 0.711 0.376 0.812 0.008 0.000 0.025 0.126 0.000 0.014 0.002 = 1,913 [95% Conf Interval] -.0903724 2739214 -.0982959 0257738 -.5665922 1525559 -.0386690 0117161 -.1521655 2229999 -.0420972 1113127 -.3508187 4478240 0060400 0408347 0040687 0130267 -.0820392 -.0053774 -.0055264 0448072 0341059 0583671 -.1144721 -.0130538 -.1543856 -.0342743 (fraction of variance due to u_i) Table 22: The GMM4 regression of Equation 5(1) EIV results dcashholdi~s Coef cashflow -.0191985 neg -.0027238 cf_neg 0290953 inst -.0035803 cf_inst 1215225 inst_neg -.0227174 cf_inst_neg -.3784987 q 0254865 size 0000283 expenditure -.0441263 acq 0161884 dncwc 0438145 shortdebt -.0377770 _cons 0116102 Tau1^2: -1.712 (10.559) Sargan-Hansen J statistic: N = Rho^2 Std.Err .0937489 0174140 1060020 0176920 1095570 0525680 1620747 0100199 0010077 0231946 0151902 0065190 0136691 0150044 2.646 z -0.20 -0.16 0.27 -0.20 1.11 -0.43 -2.34 2.54 0.03 -1.90 1.07 6.72 -2.76 0.77 P>|z| 0.838 0.876 0.784 0.840 0.267 0.666 0.020 0.011 0.978 0.057 0.287 0.000 0.006 0.439 (p=0.754, d=5) 1913 0.058 -0.015 [95% Conf.Interval] -.2029430 1645460 -.0368547 0314071 -.1786647 2368554 -.0382560 0310954 -.0932052 3362503 -.1257488 0803140 -.6961500 0608382 0058479 0451251 -.0019467 0020034 -.0895869 0013343 -.0135838 0459605 0310375 0565915 -.0645600 -.0109860 -.0177980 0410184 Table 23: The FEM regression of Equation Fixed-effects (within) regression dcashholdi~s cashflow neg cf_neg inst cf_inst inst_neg cf_inst_neg q size expenditure acq dncwc shortdebt _cons sigma_u sigma_e rho Coef .1027059 -.0051568 -.1484934 -.0036684 1625072 -.0530883 -.2108133 0217222 0081875 -.0436436 0209760 0455998 -.0610597 -.0987078 04245254 10730300 13534078 Std Err .0503995 0201228 1024029 0257653 1330907 0536004 2740143 0088336 0022494 0196097 0128440 0061631 0258031 0299239 Number of obs t 2.04 -0.26 -1.45 -0.14 1.22 -0.99 -0.77 2.46 3.64 -2.23 1.63 7.40 -2.37 -3.30 P>|t| 0.042 0.798 0.147 0.887 0.222 0.322 0.442 0.014 0.000 0.026 0.103 0.000 0.018 0.001 = 1,913 [95% Conf Interval] 0038511 2015608 -.0446261 0343126 -.3493489 0523622 -.0542050 0468682 -.0985400 4235545 -.1582214 0520447 -.7482716 3266449 0043958 0390486 0037755 0125995 -.0821066 -.0051807 -.0042166 0461686 0335114 0576882 -.1116706 -.0104488 -.1574013 -.0400143 (fraction of variance due to u_i) Table 24: The REM regression of Equation Random-effects GLS regression dcashholdi~s cashflow neg cf_neg inst cf_inst inst_neg cf_inst_neg q size expenditure acq dncwc shortdebt _cons sigma_u sigma_e rho Coef .0724809 0066002 -.0634990 0075019 0357239 -.0323989 -.2952712 0228415 -.0000738 -.0461729 0171185 0443167 -.0333385 0027072 1073030 Number of obs Std Err .0329344 0181990 0845298 0149108 1020143 0483045 2409430 0055110 0013503 0180920 0111101 0059628 0123637 0177084 t 2.20 0.36 -0.75 0.50 0.35 -0.67 -1.23 4.14 -0.01 -2.55 1.54 7.43 -2.70 0.15 P>|t| 0.028 0.717 0.453 0.615 0.726 0.502 0.220 0.000 0.996 0.011 0.123 0.000 0.007 0.878 = 1,913 [95% Conf Interval] 0079307 1370312 -.0290691 0422696 -.2291743 1021762 -.0217228 0367265 -.1642205 2356683 -.1270740 0622762 -.7675108 1769684 0120401 0336429 -.0026540 0026392 -.0816326 -.0107132 -.0046568 0388939 0326299 0560036 -.0575709 -.0091060 -.0320006 0374150 (fraction of variance due to u_i) Table 25: Hausman test for Equation Coefficients -(b) (B) (b-B) sqrt(diag(V_b-V_B)) FE RE Difference S.E cashflow neg 1027059 -.0051568 0724809 0066002 0302250 -.0117570 0381502 0085862 cf_neg -.1484934 -.0634990 -.0849943 0578021 inst -.0036684 0075019 -.0111702 0210123 cf_inst 1625072 0357239 1267833 0854764 inst_neg -.0530883 -.0323989 -.0206894 0232309 cf_inst_neg -.2108133 -.2952712 0844579 1305003 0217222 0228415 -.0011193 0069037 q size 0081875 -.0000738 0081949 0017990 -.0436436 -.0461729 0025293 0075644 acq 0209760 0171185 0038575 0064448 dncwc 0455998 0443167 0012830 0015584 -.0610597 -.0333385 -.0277213 0226482 expenditure shortdebt b = consistent under Ho and Ha; obtained from xtreg B = inconsistent under Ha, efficient under Ho; obtained from xtreg Test: Ho: chi2(129) difference in coefficients not systematic = (b-B)'[(V_b-V_B)^(-1)](b-B) = 41.61 Prob>chi2 = 0.0001 Table 26: List of companies in Research Data Industry Rubber Travel services Securities code BRC CSM DPR DRC HRC PHR SRC TNC TRC CTC DSN FDT HOT PAN SGH TCT VNC VNG DCL DHG DMC DNM IMP MKV Pharmacy - medical OPC PMC PPP TRA HAI VFG JVC VMD KSA Mineral KSB Name of company Ben Thanh Rubber Joint Stock Company The Southern Rubber Industry JSC Dong Phu Rubber Joint Stock Company Danang Rubber Joint Stock Company Hoa Binh Rubber Joint Stock Company Phuoc Hoa Rubber Joint Stock Company Sao Vang Rubber Joint Stock Company Thong Nhat Rubber Joint Stock Company Tay Ninh Rubber Joint Stock Company Gia Lai Culture - Tourist Joint Stock Company Dam Sen Water Park Corporation FiditourJoint Stock Company Hoi An Torurist Service Joint Stock Company The Pan Group Joint Stock Company Sai Gon Hotel Corporation Tay Ninh Cable Car Tour Company Vinacontrol Group Corporation Thanh Thanh Cong Tourist Joint Stock Company Benovas Pharmaceutical Company Hau Giang Pharmaceutical Joint Stock Company Domesco Medical Import Export Joint Stock Corporation Danang Medical Joint Stock Corporation Imexpharm Corporation Cai Lay Veterinary Pharmaceutical Joint Stock Company Ninh Binh Thermal Power JSC Pharmedic Pharmaceutical Medicinal JSC Phong Phu Pharmaceutial JSC Traphaco Joint Stock Company HAI Agrochem Joint Stock Company Viet Nam Fumigation Joint Stock Company Japan Vietnam Medical Instrument Joint Stock Company Vimedimex Medi - Pharma Joint Stock Company Binh Thuan Mineral Industry Joint Stock Company Binh Duong Mineral & Construction Joint Stock Company KSH KSS LBM DHM LCM CNG NLC GAS KHP NBP PCG Energy PGC PGS TBC TMP SJD SBA BTP DRL NT2 PPC VSH Steel PGD TIC DNY DTL HLA HMC HSG KKC KMT POM SMC SSM TLH VIS HPG NKG KSH Invesment & Development JSC Na Ri Hamico Mineral Joint Stock Company Lam Dong Minerals & Building Materials Joint Stock Company Duong Hieu Trading and Mining JSC Lao Cai Mineral Exploitation & Processing JSC CNG Viet Nam Joint Stock Company Naloi Hydropower Joint Stock Company PetroVietnam Gas Joint Stock Corporation Khanh Hoa Power Joint Stock Company Ninh Binh Thermal Power JSC PetroVietnam Gas City Investment and Development JSC Petrolimex Gas Corporation - JSC Southern Gas Joint Stock Company Thac Ba Hydropower Joint Stock Company Thac Mo Hydro Power Joint Stock Company Can Don Hydro Power Joint Stock Company Song Ba Joint Stock Company BaRia Thermal Power Joint Stock Company Hydro Power Joint Stock Company – Power No.3 PetroVietnam Power Nhon Trach JSC Pha Lai Thermal Power Joint Stock Company Vinh Son - Song Hinh Hydropower Joint Stock Company PetroVietNam Low Pressure Gas Distribution JSC Tay Nguyen Electricity Investment JSC DANA - Y Steel Joint Stock Company Dai Thien Loc Corporation Huu Lien Asia Corporation HCM City Metal Corporation Hoa Sen Group Produce & Trading Metal Joint Stock Company Central Viet Nam Metal Corporation Pomina Steel Corporation SMC Trading Investment Joint Stock Company Steel Structure Manufacture Joint Stock Company Tien Len Steel Group Joint Stock Company Vietnam – Italy Steel Joint Stock Company Hoa Phat Group Joint Stock Company Nam Kim Steel Joint Stock Company Oil and Gas DPM PET PLC PPS PSI PVC PVD PVE PVI PVS PVT PXS PTL ASP PXT Plastics - Packaging PXI AAA BMP BPC DAG DNP DPC RDP SPP SVI TPC TTP VKC VPK MCP DTT BBC BHS Food CAN CLC HHC KDC LSS Petrovietnam Fertilizer & Chemicals Corporation Petrovietnam General Services JS Corporation Petrolimex Petrochemical Corporation - JSC Petro Vietnam Power Services Joint Stock Company Petrovietnam Securities Incorporated Drilling Mud Joint Stock Corporation PetroVietnam Drilling & Well Services Corporation PetroVietnam Engineering Consultancy JSC PVI Holdings PetroVietnam Technical Services Corporation Petrovietnam Transportation Corporation Petroleum Equipment Assembly & Metal Structure ,JSC PVC Petro Capital & Infrastructure Investment., JSC An Pha Petrol Joint Stock Company Petroleum Pipeline and Tank Construction Joint Stock Company Petroleum Industrial & Civil Construction JSC An Phat Plastic & Green Environment JSC Binh Minh Plastic JSC Vicem Packaging Bim Son JSC Dong A Packaging Joint Stock Company Dongnai Plastic Joint – Stock Company Danang Plastic Joint Stock Company Rang Dong Plastic JSC Saigon Plastic Packaging JSC Bien Hoa Packaging Company Tan Dai Hung Plastic Joint Stock Company Tan Tien Plastic Packaging Joint Stock Company Vinh Khanh Cable Plastic Corporation Vegetable Oil Packing Joint Stock Company My Chau Printing & Packaging Holdings Company Do Thanh Technology Corporation Bibica Corporation TTC Bien Hoa - Dong Nai Sugar One Member Limited Company Ha Long Canned Food Joint Stock Corporation Cat Loi Joint Stock Company Haiha Confectionery JSC KIDO Group Lam Son Sugar Joint Stock Corporation SCD TAC VCF VNM MSN SBT FMC LAF AAM ABT ACL CMX Seafood Transportation MPC SJ1 VNH VTF VHC HVG ANV AGF TS4 ICF ATA PGT PSC GMD HTC MHC DVP VSC TMS VNS PDN TCL VTO VIP GSP SFI Chuong Duong Beverages Joint Stock Company Tuong An Vegetable Oil Joint Stock Company Vinacafé Bienhoa Joint Stock Company Viet Nam Dairy Products Joint Stock Company Masan Group Corporation Thanh Thanh Cong - Bien Hoa Joint Stock Company Sao Ta Foods Joint Stock Company Long An Food Processing Export Joint Stock Company Mekong Fisheries Joint Stock Company Bentre Aquaproduct Import And Export JSC Cuu Long Fish Joint Stock Company Ca Mau Frozen Seafood Processing Import Export Corporation Minh Phu Seafood Corporation Hung Hau Agricultural Corporation Viet Nhat Seafood Corporation Viet Thang Feed Joint Stock Company Vinh Hoan Corporation Hung Vuong Joint Stock Corporation Nam Viet Corporation Angiang Fisheries Import Export JSC Seafood Joint Stock Company No4 Investment Commerce Fisheries Corporation Ntaco Corp PGT Holdings Joint Stock Company Petrolimex Saigon Transportation and Service JSC Gemadept Corporation HocMon Trade Joint Stock Company MHC Joint Stock Company Dinh Vu Port Investment and Development JSC Vietnam Container Shipping Joint Stock Corporation Transimex Corporation VietNam Sun Copporation Dong Nai Port JSC Tan Cang Logistics & Stevedoring Joint Stock Company Viet Nam Tanker Joint Stock Company Vietnam Petroleum Transport Joint Stock Company International Gas Product Shipping Joint Stock Company Sea & Air Freight International VOS TCO HTV VNL PJT STT VNA CIC CID PVX L18 LIG PHC PTC CTD HBC Construction DXG DIG BCI VNE THG TV1 SC5 C32 C47 HU3 Trade ARM BTT CMS HLG KHA VHG PNJ SVC HDC GIL TNA Viet Nam Ocean Shipping Joint Stock Company Duyen Hai Multi Modal Transport JSC Ha Tien Transport Joint Stock Company Vinalink Logistics Joint Stock Company Petrolimex Joint Stock Tanker Company Saigontourist Transport Corporation Vinaship Joint Stock Company Cotec Investment And Construction JSC Construction & Infrastructure Development JSC Petro Vietnam Construction Joint Stock Corporation Investment And Construction JSC No.18 Licogi 13 JSC Phuc Hung Holdings Construction JSC Post & Telecommunications Investment And Construction JSC Coteccons Construction Joint Stock Company Hoa Binh Construction Group Joint Stock Company Dat Xanh Real Estate Service & Construction Corporation Development Investment Construction JSC Binh Chanh Construction Investment Shareholding Company Vietnam Electricity Construction Joint Stock Corporation Tien Giang Investment And Construction JSC Power Engineering Consulting Joint Stock Company Construction Joint Stock Copany No Construction Investment Corporation 3-2 Construction Joint Stock Company 47 HUD3 Investment and Construction Joint Stock Company General Aviation Import Export JSC Ben Thanh Trading & Service Joint Stock Company Viet Nam Construction and Manpower JSC Hoang Long Group Khanh Hoi Investment and Services Corporation Quang Nam Rubber Investment JSC Phu Nhuan Jewelry Joint Stock Company Saigon General Service Corporation Ba Ria - Vung Tau House Development JSC Binh Thanh Import - Export Production & Trade JSC Thien Nam Trading Import Export JSC CCI CMV SMA PIT DCS DQC GMC Manufacturing HAP KMR PAC RAL SAV SSC TCM TLG TNG VID VTB NSC SAM TTF LIX TIX DHC EVE SHI GTA FPT CMG ELC Telecommunications technology Fertilizer SGT ST8 ITD SVT CMT PNC DCM Cu Chi Commercial & Industrial Developing Investment JSC Ca Mau Trading Joint Stock Company Sai Gon Machinery Spare Parts JSC Petrolimex International Trading Joint Stock Company Dai Chau Group Joint Stock Company Dien Quang Joint Stock Company Saigon Garmex Manufacturing Trade Joint Stock Company Hapaco Corporation Mirae Joint Stock Company Dry Cell And Storage Battery Joint Stock Company Rangdong Light Source And Vacuum Flask JSC Savimex Corporation Southern Seed Corporation Thanh Cong Textile Garment Investment Trading JSC Thien Long Group Corporation TNG Investment And Trading JSC Vien Dong Investment Development Trading Corporation Viettronics Tan Binh Joint Stock Company National Seed Joint Stock Company SAM Holdings Corporation Truong Thanh Furniture Corporation Lix Detergent Joint Stock Company Tan Binh Import Export Joint Stock Corporation Dong Hai Joint Stock Company of Bentre Everpia JSC Son Ha International JSC Thuan An Wood Processing Joint Stock Company FPT Corporation CMC Corporation Electronics Communications Technology Investment Development Corporation Sai Gon Telecommunication & Technologies Corporation Sieu Thanh Joint Stock Company Innovative Technology Development Corporation Sai Gon Vien DongTechnology , JSC Information and Networking Technology JSC Phuong Nam Cultural Joint Stock Corporation Petro Viet Nam Ca Mau Fertilizer JSC BFC LAS DGC SFG TSC VAF NFC PSW PMB PSE PCE VCS VGC HT1 CTI Building materials CVT NNC BCC VHL BTS VTV DHA HOM CLH VIT ACC DIC HVX CCM GMX HCC TTC BBS NHC QNC TXM MCC DC4 Binh Dien Fertilizer Joint Stock Company Lam Thao Fertilizers And Chemicals JSC Duc Giang Chemical & Detergent Powder JSC The Southern Fretilizee JSC Techno - Agricultural Supplying Joint Stock Company Van Dien Fused Magnesium Phosphate Fertilizer JSC Ninh Binh Phosphate Fertilizer Joint Stock Company South-West PetroVietnam Fertilizer and Chemicals JSC North Petro Vietnam Fertilizer and Chemicals Joint Stock Company South-East PetroVietnam Fertilizer & Chemicals JSC Central PetroVietnam Fertilizer And Chemicals JSC Vicostone JSC Viglacera Corporation - JSC Ha Tien Cement Joint Stock Company Cuong Thuan IDICO Development Investment Coporation CMC Joint Stock Company Nui Nho Stone JSC Bim Son Cement JSC Viglacera Ha Long JSC Vicem But Son Cement JSC VICEM Materials Transport Cement JSC Hoa An Joint Stock Company Vicem Hoang Mai Cement JSC VVMI La Hien Cement Joint Stock Company Viglacera Tien Son Joint Stock Company Becamex Asphalt & Concrete JSC DIC Investment & Trading Joint Stock Company Vicem Hai Van Cement Joint Stock Company Can Tho Mineral & Cement Joint Stock Company My Xuan Brick Tile Pottery And Construction JSC Intimex - Hoa Cam Concrete JSC Thanh Thanh Joint Stock Company VICEM Packaging But Son JSC Nhi Hiep Brick-Tile Co-Operation Quang Ninh Construction & Cement Joint Stock Company VICEM Gypsum And Cement Joint Stock Company High Grade Brick Tile Corporation DIC No.4 Joint Stock Company SDN TMX VXB DXV NAV SCL TCR SCJ VTS SDY BHT HLY TBX CYC Dong Nai Paint Corporation VICEM Cement Trading JSC Ben Tre Construction Material Joint Stock Company Da Nang Construction Building Materials & Cement JSC Nam Viet Joint Stock Company Song Da Cao Cuong JSC Taicera Enterprise Company Sai Son Cement Joint Stock Company Viglacera Tu Son Ceramic JSC Song Da Yaly Cement Joint Stock Company Bach Dang TMC Construction Investment JSC Viglacera Ha Long I Joint Stock Company Thai Binh Cement Joint Stock Company Chang Yih Ceramic Joint Stock Company ... topic "The Effect of Cash Flow Sensitivity on Cash Holdings: Evidence from Vietnam" , examining whether or not the effect of cash flow sensitivity on cash holdings in Vietnamese enterprises 1.2 The. .. Model the effect of cash flow sensitivity on cash holdings 14 3.2.2 The effect of cash flow sensitivity on cash holdings is under financial constraints 15 3.2.3 The effect of cash. .. Chan and Zhang Besides the studies on the effects of cash flow sensitivity on cash holdings, studies on impacts of agent costs on the effect of cash flow sensitivity on cash holdings had certain