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Impact of Financial Ratios on Net Cash Flow of Vietnamese Listed Companies

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Proceedings of the 4th International Conference on Research in Management and Technovation (ICRMAT 2023)

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Abstract

The objective of the study is to investigate the effect of financial ratios on the net cash flow of companies listed on the Vietnam stock exchange in 2020. Quantitative research was carried out by obtaining the financial statements of 712 companies listed on the Hanoi and Ho Chi Minh Stock Exchange as secondary data. Data analysis was done by using correlation analysis, multiple linear regression analysis and the results show that there all of the five studied factors have effects on companies’ cash flow, of which profit has a positive and most influencing factor with the coefficient of 0.680, whereas efficiency ratio in term of inventories and receivable turnover has the least positive impact on cash flow with the coefficient of 0.032. The liquidity ratio has a negative impact on net cash flow with the coefficient value of − 0.016. Hence, this study provides some recommended solutions for businesses to improve the cash flow management according to its business condition by looking at influencing factors including financial leverage, maintain liquidity and make cash flow planning in the short and long term.

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Author information

Authors and Affiliations

  1. Thuongmai University, Hanoi, Vietnam

    Nguyen Thi Thanh Phuong

  2. Thuyloi University, Hanoi, Vietnam

    Nguyen Thu Hang & Bui Thi Ngoc

  3. University of Labour Social Affairs, Hanoi, Vietnam

    Nguyen Thị Thanh

Authors
  1. Nguyen Thi Thanh Phuong
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  2. Nguyen Thu Hang
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  3. Nguyen Thị Thanh
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  4. Bui Thi Ngoc
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Corresponding author

Correspondence to Bui Thi Ngoc .

Editor information

Editors and Affiliations

  1. Centre for Post-Graduate Studies, Hanoi University of Industry, Hanoi, Vietnam

    Thi Hong Nga Nguyen

  2. Gillings School of Global Public Health, University of North Carolina at Chapel, Chapel HIll, NC, USA

    Darrell Norman Burrell

  3. Department of Computer Science and Engineering, CMR Institute of Technology, Hyderabad, Telangana, India

    Vijender Kumar Solanki

  4. Accounting and Auditing Faculty, Academy of Finance, Hanoi, Vietnam

    Ngoc Anh Mai

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© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

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Phuong, N.T.T., Hang, N.T., Thanh, N.T., Ngoc, B.T. (2024). Impact of Financial Ratios on Net Cash Flow of Vietnamese Listed Companies. In: Nguyen, T.H.N., Burrell, D.N., Solanki, V.K., Mai, N.A. (eds) Proceedings of the 4th International Conference on Research in Management and Technovation. ICRMAT 2023. Springer, Singapore. https://doi.org/10.1007/978-981-99-8472-5_52

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