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The Determinants of Corporate Liquidity in Real Estate Industry: Evidence from Vietnam

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  • Truong Trinh
  • Phan Thi Thuy Mai

Abstract

This paper investigates the impact of firm size, profitability, cash flows, investment opportunities, leverage and capital expenditure on cash holding level and cash conversion cycle for 54 listed real estate companies in Vietnam stock exchange during 2010-2014. The empirical result highlights two most important variables that affect the cash holdings–profitability and capital expenditure that have strong influence on the corporate liquidity of these real estate companies. The study also indicates that policies on cash holdings and working capital investment have been affected under financially constrained conditions. The study result provides speculative motive of cash holdings as well as the emphasis of financial constraints on the adjustment of working capital investment in the real estate industry.

Suggested Citation

  • Truong Trinh & Phan Thi Thuy Mai, 2016. "The Determinants of Corporate Liquidity in Real Estate Industry: Evidence from Vietnam," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(7), pages 1-21, July.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:7:p:21
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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