TAILIEUCHUNG - Impact of stock market liquidity on investment of listed enterprises: Evidence from Vietnam

This paper studies the effects of market liquidity and other factors on investment of non-financial companies listed on Vietnam's stock exchange for the 2008–2013 period by adopting different measures of investment and liquidity, and considering the impact of interaction between liquidity and others, including issuing, financial constraints, and growth opportunities, on firm investment. | 80 Tran Ngoc Tho & Dang Nhu Y / Journal of Economic Development 23(4) 80-96 Impact of Stock Market Liquidity on Investment of Listed Enterprises: Evidence from Vietnam TRAN NGOC THO University of Economics HCMC – thotcdn@ DANG NHU Y Far East National Bank – HCMC branch – dangnhuytc9@ ARTICLE INFO ABSTRACT Article history: This paper studies the effects of market liquidity and other factors on investment of non-financial companies listed on Vietnam's stock exchange for the 2008–2013 period by adopting different measures of investment and liquidity, and considering the impact of interaction between liquidity and others, including issuing, financial constraints, and growth opportunities, on firm investment. The estimated results of DGMM with fixed effects and interacting variables prove that stock market liquidity negatively relates to the investment. We do not find any compelling evidence of the liquidity–investment nexus among firms with tighter financial constraints and better investment opportunities. However, we do find the relations between firm investment and financial leverage and also firm investment and cash flows. Received: May 11, 2015 Received in revised form: Oct. 07, 2015 Accepted: Sep. 23, 2016 Keywords: Firm investment, liquidity, D-GMM. Tran Ngoc Tho & Dang Nhu Y / Journal of Economic Development 23(4) 80-96 81 1. Introduction Liquidity of Vietnam’s stock market, in recent years, has soared with the participation of domestic and foreign investors, as well as other specialized organizations. A rise in market liquidity is expected to entail large capital sources along with low costs of capital use, promoting investment in the economy in general and corporate investment in particular. When the stock market liquidity rises, its impact on investment among enterprise becomes a matter of concern. Two different perspectives govern the development of research into liquidity effects on firm investment. The first maintains that .

• Kinh tế học
• Firm investment
• Stock market liquidity
• Listed enterprise
• Growth opportunities
• Firm investment
• Technology development investment
• Development investment
• Firm Productivity
• Developing countries
• This paperemp irically
• Bank credit control policy
• Evidence from China
• Bank lending
• Firm funding
• Credit policy
• Investment decision
• Economics for investment decision
• Fiscal policy
• Business cycles
• Market structures
• Firm structures
• Capital budgeting as a tool of management decision making
• National investment bank limited
• Management decision making
• Long term effect
• The firm’s value
• Market risks and operating risks
• Decision making process
• Capital budgeting and investment
• Acceptable risk level
• Market Risk and Firm Risk
• Foreign direct investment
• Market size
• Official development assistance
• Multinational firm
• Real per capita GDP
• Investment in human capital
• Labor productivity
• Economic zone
• Propensity Score Matching method
• Several firm characteristics
• Governmental management
• Customer relationship
• Supplier relationship
• Firm’s performance
• Metastatic Pancreatic Cancer
• Pancreatic Cancer
• Clinical Course
• Survival
• Endoscopic Management
• Palliative Therapy
• taxation system
• Tax benefits
• Types of entities
• Importance of treaties
• Investment through
• equity investments
• attracting large
• strategies aimed
• new firm locations
• existing enterprises
• Specifically
• employment impact
• macroeconomic and financial
• restore confidence
• confidence
• malware
• Symantec Protection
• enables reliable recovery
• International money
• Foreign exchange risk
• Financial management
• The multinational firm
• Direct foreign investment
• International lending
• International portfolio investment
• The monetary approach
• Local government involvement
• Place marketing
• Local tourism firm
• Tourism enterprices
• Developing acitivities
• Excess analyst coverage
• Stock return
• Firm performance
• Information delivery
• Investment portfolios
• Financial constraints
• Cash flows
• Information asymmetry
• Tunisian firms
• Panel data analysis
• Clustering of foreign firm
• Human capital and skill present
• Location choice strategy
• Innovation activity of foreign investors
• Host economy of a developing nation