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Impact of Capital Structure and Cash Holdings on Firm Value: Case of Firms Listed on the Ho Chi Minh Stock Exchange

Author

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  • Nguyen Minh Ha

    (Ho Chi Minh City Open University, 97 Vo Van Tan, Ho Chi Minh City, Vietnam,)

  • Le Minh Tai

    (Sai Gon Technology University, 180 Cao Lo, Ho Chi Minh City, Vietnam)

Abstract

This study analyses the impact of capital structure on cash holdings and the impact of capital structure and cash holdings on the value of firms listed on the Ho Chi Minh stock exchange (HOSE). With data from the financial statements of 105 firms listed on HOSE since 2009-2014 and using the generalized least square method, results show that cash holdings are positively related to the firm value; short-term debt is negatively related to firm value; the impact of long-term debt on the firm value is not statistically significant; short and long-term debt are negatively related to cash holdings.

Suggested Citation

  • Nguyen Minh Ha & Le Minh Tai, 2017. "Impact of Capital Structure and Cash Holdings on Firm Value: Case of Firms Listed on the Ho Chi Minh Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 24-30.
    • Handle: RePEc:eco:journ1:2017-01-05
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    References listed on IDEAS

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    Cited by:

    1. Manh-Tung Ho & Ngoc-Thang B. Le & Hung-Long D. Tran & Quoc-Hung Nguyen & Manh-Ha Pham & Minh-Hoang Ly & Manh-Toan Ho & Minh-Hoang Nguyen & Quan-Hoang Vuong, 2021. "A Systematic and Critical Review on the Research Landscape of Finance in Vietnam from 2008 to 2020," JRFM, MDPI, vol. 14(5), pages 1-24, May.

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    More about this item

    Keywords

    Capital Structure; Cash Holdings; Firm Value;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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