Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from Vietnam
This paper examines the relationships between macroscopic determinants (typically, monetary policies) and microscopic factors (mainly, cash flows and other controlling variables) on corporate investment. By employing system-GMM estimation for the 250 Vietnamese non-financial firms, the authors find...
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doaj-d42046d482914a11b19d65a9f8034efe2020-11-25T00:13:21ZengMDPI AGJournal of Risk and Financial Management1911-80742019-03-011214610.3390/jrfm12010046jrfm12010046Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from VietnamLinh My Tran0Chi Hong Mai1Phuoc Huu Le2Chi Linh Vu Bui3Linh Viet Phuong Nguyen4Toan Luu Duc Huynh5Faculty of Accounting and Auditing, Banking University of Ho Chi Minh City, Ho Chi Minh City 700000, VietnamFaculty of Accounting and Auditing, Banking University of Ho Chi Minh City, Ho Chi Minh City 700000, VietnamEnglish Faculty, Foreign Trade University, Ho Chi Minh City 700000, VietnamFaculty of Business Administration, Banking University of Ho Chi Minh City, Ho Chi Minh City 700000, VietnamFaculty of Finance, Banking University of Ho Chi Minh City, Ho Chi Minh City 700000, VietnamSchool of Banking, University of Economics, Ho Chi Minh City 700000, VietnamThis paper examines the relationships between macroscopic determinants (typically, monetary policies) and microscopic factors (mainly, cash flows and other controlling variables) on corporate investment. By employing system-GMM estimation for the 250 Vietnamese non-financial firms, the authors find that the expansionary monetary policy not only encourages the borrowing activities but also results in more corporate investment activities over the period from 2006 to 2016. Noticeably, the internal cash flow is also significant factor, which enhances the activities of corporate investment. Finally, there are differences between internal cash flow effects on corporate investments between two groups, divided by three theoretical criteria. To recapitulate, our implications highlight the importance of monetary policy stability for sustainable growth in corporate investment in Vietnam.http://www.mdpi.com/1911-8074/12/1/46monetary policycash flowinvestmentGMM |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Linh My Tran Chi Hong Mai Phuoc Huu Le Chi Linh Vu Bui Linh Viet Phuong Nguyen Toan Luu Duc Huynh |
spellingShingle |
Linh My Tran Chi Hong Mai Phuoc Huu Le Chi Linh Vu Bui Linh Viet Phuong Nguyen Toan Luu Duc Huynh Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from Vietnam Journal of Risk and Financial Management monetary policy cash flow investment GMM |
author_facet |
Linh My Tran Chi Hong Mai Phuoc Huu Le Chi Linh Vu Bui Linh Viet Phuong Nguyen Toan Luu Duc Huynh |
author_sort |
Linh My Tran |
title |
Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from Vietnam |
title_short |
Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from Vietnam |
title_full |
Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from Vietnam |
title_fullStr |
Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from Vietnam |
title_full_unstemmed |
Monetary Policy, Cash Flow and Corporate Investment: Empirical Evidence from Vietnam |
title_sort |
monetary policy, cash flow and corporate investment: empirical evidence from vietnam |
publisher |
MDPI AG |
series |
Journal of Risk and Financial Management |
issn |
1911-8074 |
publishDate |
2019-03-01 |
description |
This paper examines the relationships between macroscopic determinants (typically, monetary policies) and microscopic factors (mainly, cash flows and other controlling variables) on corporate investment. By employing system-GMM estimation for the 250 Vietnamese non-financial firms, the authors find that the expansionary monetary policy not only encourages the borrowing activities but also results in more corporate investment activities over the period from 2006 to 2016. Noticeably, the internal cash flow is also significant factor, which enhances the activities of corporate investment. Finally, there are differences between internal cash flow effects on corporate investments between two groups, divided by three theoretical criteria. To recapitulate, our implications highlight the importance of monetary policy stability for sustainable growth in corporate investment in Vietnam. |
topic |
monetary policy cash flow investment GMM |
url |
http://www.mdpi.com/1911-8074/12/1/46 |
work_keys_str_mv |
AT linhmytran monetarypolicycashflowandcorporateinvestmentempiricalevidencefromvietnam AT chihongmai monetarypolicycashflowandcorporateinvestmentempiricalevidencefromvietnam AT phuochuule monetarypolicycashflowandcorporateinvestmentempiricalevidencefromvietnam AT chilinhvubui monetarypolicycashflowandcorporateinvestmentempiricalevidencefromvietnam AT linhvietphuongnguyen monetarypolicycashflowandcorporateinvestmentempiricalevidencefromvietnam AT toanluuduchuynh monetarypolicycashflowandcorporateinvestmentempiricalevidencefromvietnam |
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