TBU Publications
Repository of TBU Publications

The prestige of tock exchages and corporate cash holding in transition economies: A study on vietnmese listed firms

DSpace Repository

Show simple item record

dc.title The prestige of tock exchages and corporate cash holding in transition economies: A study on vietnmese listed firms en
dc.contributor.author Do, Thi Thanh Nhan
dc.contributor.author Ngo, Minh Vu
dc.contributor.author Pham, Ha
dc.contributor.author Pavelková, Drahomíra
dc.relation.ispartof Investment Management and Financial Innovations
dc.identifier.issn 1810-4967 Scopus Sources, Sherpa/RoMEO, JCR
dc.date.issued 2017
utb.relation.volume 14
utb.relation.issue 3
dc.citation.spage 199
dc.citation.epage 209
dc.type article
dc.language.iso en
dc.publisher LLC CPC Business Perspectives
dc.identifier.doi 10.21511/imfi.14(3-1).2017.04
dc.relation.uri https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-259/the-prestige-of-stock-exchanges-and-corporate-cash-holding-in-transition-economies-a-study-on-vietnamese-listed-firms
dc.subject Cash holding en
dc.subject Stock exchange en
dc.subject The prestige en
dc.subject Vietnamese listed firms en
dc.description.abstract The main purpose is to examine the relationship between corporate cash holding level and the prestige of the stock exchanges. And the other determinants in the listing requirements impact on cash holding level will be indicated. The paper uses a sample of 577 listed firms excluding the financial institutions on the Vietnamese stock exchange over the period 2007-2015. The results show that the listed firms on the stock exchange with higher prestige hold larger amount of cash reserve and vice versa. The study shows that there is a statistically significant connection between cash holding and the listing requirements such as profitability, dividend and information disclosure. The findings have implications on the cash management of listed firms in the stock exchanges with dissimilar prestige. © Do Thi Thanh Nhan, Ngo Minh Vu, Pham Ha, Drahomíra Pavelková, 2017. en
utb.faculty Faculty of Management and Economics
dc.identifier.uri http://hdl.handle.net/10563/1007694
utb.identifier.obdid 43877265
utb.identifier.scopus 2-s2.0-85033771877
utb.source j-scopus
dc.date.accessioned 2018-01-15T16:31:40Z
dc.date.available 2018-01-15T16:31:40Z
dc.rights Attribution 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by/4.0/
dc.rights.access openAccess
utb.contributor.internalauthor Do, Thi Thanh Nhan
utb.contributor.internalauthor Ngo, Minh Vu
utb.contributor.internalauthor Pavelková, Drahomíra
utb.fulltext.affiliation © Do Thi Thanh Nhan, Ngo Minh Vu, Pham Ha, Drahomíra Pavelková, 2017 Do Thi Thanh Nhan, M.Sc., Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic. Ngo Minh Vu, M.Sc., Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic. Pham Ha, Dr., Finance and Banking faculty, Hochiminh Open University, Hochiminh city, Vietnam. Drahomíra Pavelková, Professor, Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic.
utb.fulltext.dates Received on: 13th of July, 2017 Accepted on: 12th of September, 2017
utb.fulltext.references 1. Abushammala, S. N., & Sulaiman, J. (2014). Cash holdings and corporate profitability: Some evidences form Jordan. International Journal of Innovation and Applied Studies, 8(3), 898. Retrieved from https://search. proquest.com/docview/1615349455?accountid=15518 2. Al-Najjar, B., & Clark, E. (2017). Corporate governance and cash holdings in MENA: Evidence from internal and external governance practices. Research in International Business and Finance, 39, 1-12. https://doi.org/10.1016/j.ribaf.2016.07.030 3. Avramov, D., Chordia, T., & Goyal, A. (2006). Liquidity and autocorrelations in individual stock returns. The Journal of Finance, 61(5), 2365-2394. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6261.2006.01060.x/abstract 4. Benos, E., & Weisbach, M. S. (2004). Private benefits and cross-listings in the united states. Emerging Markets Review, 5(2), 217-240. https://doi.org/10.1016/j.ememar.2004.01.002 5. Bianconi, M., Chen, R., & Yoshino, J. A. (2013). Firm value, the Sarbanes-Oxley Act and crosslisting in the U.S., Germany and Hong Kong destinations. The North American Journal of Economics and Finance, 24, 25-44. https://doi.org/10.1016/j.najef.2012.07.002 6. Chizema, A., & Le, T. (2011). State ownership and firm performance: Evidence from the chinese listed firms. Organizations and Markets in Emerging Economies, 2(2), 72-90. Retrieved from http://econpapers.repec.org/article/vulomefvu/v _3a2_3ay_3a2011_3ai_3a2_3aid_3a119.htm 7. Datar, V. T., Y. Naik, N., & Radcliffe, R. (1998). Liquidity and stock returns: An alternative test. Journal of Financial Markets, 1(2), 203-219. https://doi.org/10.1016/S1386-4181(97)00004-9 8. Dittmar, A., & Mahrt-Smith, J. (2007). Corporate governance and the value of cash holdings. Journal of Financial Economics, 83(3), 599-634. Retrieved from http://EconPapers.repec.org/RePEc:eee:jfinec:v:83:y:2007:i:3:p:599-634 9. Dittmar, A., Mahrt-Smith, J., & Servaes, H. (2003). International corporate governance and corporate cash holdings. Journal of Financial and Quantitative Analysis, 38(01), 111-133. Retrieved from http://www.jstor.org/stable/4126766 10. Doidge, C. (2004). U. S. crosslistings and the private benefits of control: Evidence from dualclass firms. Journal of Financial Economics, 72(3), 519-553. https://doi.org/10.1016/S0304-405X(03)00208-3 11. Elliott, M. J. A., & Carvajal, A. (2007). Strengths and weaknesses in securities market regulation: A global analysis (International Monetary Fund. IMF Working Paper, 07/259). Retrieved from Carvajal, Ana and Elliott, Jennifer E., Strengths and Weaknesses in Securities Market Regulation: A Global Analysis (November 2007). (IMF Working Papers, 1-49, 2007). Retrieved from https://ssrn.com/abstract=1030688 12. Ferreira, M. A., & Vilela, A. S. (2004). Why do firms hold cash? Evidence from EMU countries. European Financial Management, 10(2), 295-319. https://doi.org/10.1111/j.1354-7798.2004.00251.x 13. García‐Teruel, P. J., & Martínez‐Solano, P. (2008). On the determinants of SME cash holdings: Evidence from spain. Journal of Business Finance & Accounting, 35(1‐2), 127-149. https://doi.org/10.1111/j.1468-5957.2007.02022.x 14. Gill, A., & Shah, C. (2012). Determinants of corporate cash holdings: Evidence from canada. International Journal of Economics and Finance, 4(1), 70. http://dx.doi.org/10.5539/ijef.v4n1p70 15. Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0 16. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323-329. Retrieved from http://www.jstor.org/stable/1818789 17. Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. The Journal of Finance, 48(3), 831-880. https://doi.org/10.1111/j.1540-6261.1993.tb04022.x 18. Kusnadi, Y. (2011). Do corporate governance mechanisms matter for cash holdings and firm value? Pacific-Basin Finance Journal, 19(5), 554-570. https://doi.org/10.1016/j.pacfin.2011.04.002 19. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1), 3-27. https://doi.org/10.1016/S0304-405X(00)00065-9 20. Lambert, R., Leuz, C., & Verrecchia, R. E. (2007). Accounting information, disclosure, and the cost of capital. Journal of Accounting Research, 45(2), 385-420. https://doi.org/10.1111/j.1475-679X.2007.00238.x 21. Lang, M. H., Lins, K. V., & Miller, D. P. (2003). ADRs, analysts, and accuracy: Does cross listing in the united states improve a firm’s information environment and increase market value? Journal of Accounting Research, 41(2), 317-345. https://doi.org/10.1111/1475-679X.00106 22. Le, T. V., & Buck, T. (2011). State ownership and listed firm performance: A universally negative governance relationship? Journal of Management & Governance, 15(2), 227-248. Retrieved from http://hdl.handle.net/10.1007/s10997-009-9098-5 23. Lee, K., & Lee, C. (2009). Cash holdings, corporate governance structure and firm valuation. Review of Pacific Basin Financial Markets and Policies, 12(03), 475-508. https://doi.org/10.1142/S021909150900171X 24. Lehmann, E., & Weigand, J. (2000). Does the governed corporation perform better? governance structures and corporate performance in Germany. European Finance Review, 4(2), 157-195. http://dx.doi.org/10.2139/ssrn.275834 25. Martínez-Sola, C., García-Teruel, P. J., & Martínez-Solano, P. (2013). Corporate cash holding and firm value. Applied Economics, 45(2), 161-170. http://dx.doi.org/10.1080/00036846.2011.595696 26. McConnell, J. J., & Servaes, H. (1990). Additional evidence on equity ownership and corporate value. Journal of Financial Economics, 27(2), 595-612. https://doi.org/10.1016/0304-405X(90)90069-C 27. Megginson, W. L., & Netter, J. M. (2001). From state to market: A survey of empirical studies on privatization. Journal of Economic Literature, 39(2), 321-389. Retrieved from http://www.jstor.org/stable/2698243 28. Megginson, W. L., Ullah, B., & Wei, Z. (2014). State ownership, soft-budget constraints, and cash holdings: Evidence from China’s privatized firms. Journal of Banking & Finance, 48, 276-291. https://doi.org/10.1016/j.jbankfin.2014.06.011 29. Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221. https://doi.org/10.1016/0304-405X(84)90023-0 30. Myers, S. C. (1977). Determinants of corporate borrowing. Journal of financial economics, 5(2), 147-175. Retrieved from http://EconPapers.repec.org/RePEc:eee:jfinec:v:5:y:1977:i:2:p:147-175 31. Nahata, R. (2008). Venture capital reputation and investment performance. Journal of Financial Economics, 90(2), 127-151. https://doi.org/10.1016/j.jfineco.2007.11.008 32. Ogundipe, L. O., Ogundipe, S. E., & Ajao, S. K. (2012). Cash holding and firm characteristics: Evidence from nigerian emerging market. Journal of Business, Economics, 1(2), 45-58. Retrieved from http://dergipark.ulakbim.gov.tr/jbef/article/download/50000 75829/5000070130 33. Opler, T., Pinkowitz, L., Stulz, R., & Williamson, R. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52(1), 3-46. https://doi.org/10.1016/S0304-405X(99)00003-3 34. Ozkan, A., & Ozkan, N. (2004). Corporate cash holdings: An empirical investigation of UK companies. Journal of Banking & Finance, 28(9), 2103-2134. https://doi.org/10.1016/j.jbankfin.2003.08.003 35. Palazzo, B. (2012). Cash holdings, risk, and expected returns. Journal of Financial Economics, 104(1), 162-185. https://doi.org/10.1016/j.jfineco.2011.12.009 36. Pinkowitz, L., Stulz, R., & Williamson, R. (2006). Does the contribution of corporate cash holdings and dividends to firm value depend on governance? A cross-country analysis. The Journal of Finance, 61(6), 2725-2751. https://doi.org/10.1111/j.1540-6261.2006.01003.x 37. Sarkissian, S., & Schill, M. J. (2007). Are there permanent valuation gains to overseas listing? Review of Financial Studies, 22(1), 371-412. http://dx.doi.org/10.2139/ssrn.395140 38. Slovin, M. B., Sushka, M. E., & Polonchek, J. A. (1991). The information content of multiple seasoned common stock offerings by bank holding companies. Journal of Banking & Finance, 15(3), 633-646. https://doi.org/10.1016/0378-4266(91)90089-5 39. Subrahmanyam, A., & Titman, S. (1999). The going‐public decision and the development of financial markets. The Journal of Finance, 54(3), 1045-1082. https://doi.org/10.1111/0022-1082.00136 40. Titman, S., Wei, K. J., & Xie, F. (2004). Capital investments and stock returns. Journal of Financial and Quantitative Analysis, 39(04), 677-700. Retrieved from http://www.jstor.org/stable/30031881 41. Turnbull, S. (1997). Corporate governance: Its scope, concerns and theories. Corporate Governance: An International Review, 5(4), 180-205. https://doi.org/10.1111/1467-8683.00061 42. Uyar, A., & Kuzey, C. (2014). Determinants of corporate cash holdings: Evidence from the emerging market of turkey. Applied Economics, 46(9), 1035-1048. http://dx.doi.org/10.1080/00036846.2013.866203 43. Xu, N., Chen, Q., Xu, Y., & Chan, K. C. (2016). Political uncertainty and cash holdings: Evidence from china. Journal of Corporate Finance, 40, 276-295. https://doi.org/10.1016/j.jcorpfin.2016.08.007 44. Yu, M. (2013). State ownership and firm performance: Empirical evidence from Chinese listed companies. China Journal of Accounting Research, 6(2), 75-87. https://doi.org/10.1016/j.cjar.2013.03.003
utb.fulltext.sponsorship The authors would like to thank the Internal Grant Agency of FaME for providing financial support to carry out this research. Funding was extended through: TBU No. IGA/FaME/2017/004 – The Relationship between Concentration Ownership and Financial Reporting Quality
utb.scopus.affiliation Faculty of Management and Economics, Tomas Bata University, Zlín, Czech Republic; Finance and Banking faculty, Hochiminh Open University, Hochiminh city, Viet Nam
utb.fulltext.projects IGA/FaME/2017/004
Find Full text

Files in this item

Show simple item record

Attribution 4.0 International Except where otherwise noted, this item's license is described as Attribution 4.0 International