IDEAS home Printed from https://ideas.repec.org/a/taf/lpadxx/v45y2022i5p427-441.html
   My bibliography  Save this article

Navigating through Political Risk in Vietnam: The Role of Corporate Cash Holdings

Author

Listed:
  • Anh-Tuan Le
  • Thao Phuong Tran

Abstract

This paper investigates the effect of political risk on corporate cash holdings in Vietnam from 2009 to 2018. We show that political risk is positively associated with cash holdings. Our findings are robust to other advanced estimation methods when alternative measures of political risk are considered and after addressing endogeneity caveats by two-stage least square estimation. Further analyses reveal that the positive impact of political risk on cash holdings is more pronounced for financially constrained firms and firms with high institutional ownership. Overall, the findings contribute to the literature on how political risk exposure increases firm cash holdings, which is consistent with the precautionary savings motive of cash.

Suggested Citation

  • Anh-Tuan Le & Thao Phuong Tran, 2022. "Navigating through Political Risk in Vietnam: The Role of Corporate Cash Holdings," International Journal of Public Administration, Taylor & Francis Journals, vol. 45(5), pages 427-441, April.
    • Handle: RePEc:taf:lpadxx:v:45:y:2022:i:5:p:427-441
    DOI: 10.1080/01900692.2021.2001525
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01900692.2021.2001525
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01900692.2021.2001525?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:lpadxx:v:45:y:2022:i:5:p:427-441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/lpad .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.