A study on the factors affecting the decision of cash holding of Vietnamese listed textile and garment enterpirses

Abstract

The author uses the data of 38 joint-stock textile and garment companies listed on the Vietnamese stock market to estimate the factors affecting their decisions to hold cash. The results show that the revenue growth rate, inventory turnover, and receivables turnover yield a positive relationship with the volume of firms' held cash. Firm size and payables turnover are negatively related to the enterprises' cash holdings. In addition, the debt ratio and substitute assets have no statistically significant relationship vvith the cash balance of the researched companies.