Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam
This paper examined the relationship between free cash flow and corporate profitability of Vietnamese listed firms. Based on the agency theory of free cash flow, several previous studies proposed a negative relationship between free cash flow and corporate profitability. In this study, we argue that...
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| Định dạng: | Journal article |
| Ngôn ngữ: | English |
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2022
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| Truy cập trực tuyến: | http://scholar.dlu.edu.vn/handle/123456789/722 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85041999529&partnerID=40&md5=5d83ae157fd554bf7bf60f874e597645 |
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oai:scholar.dlu.edu.vn:123456789-7222022-08-02T06:46:02Z Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam Nguyễn, Thanh Hồng Ân Nguyễn, Văn Tuấn Free cash flow Firm financial performance profitability Vietnam This paper examined the relationship between free cash flow and corporate profitability of Vietnamese listed firms. Based on the agency theory of free cash flow, several previous studies proposed a negative relationship between free cash flow and corporate profitability. In this study, we argue that the presence of information asymmetry in the financial market of developing economies may limit access to external sources of finance. Thus, free cash flow may serve as a cheaper alternative source of finance. This benefit may reduce, nullify, or even outweigh the agency cost caused by excess free cash flow. The empirical analysis results based on a sample of 208 Vietnamese listed nonfinancial firms in the period from 2012 to 2016 showed that free cash flow seems to have a positive effect on the corporate profitability of Vietnamese listed firms. 38 1 1-11 2022-08-02T06:45:59Z 2022-08-02T06:45:59Z 2018 Journal article Bài báo đăng trên tạp chí thuộc SCOPUS, bao gồm book chapter 15452921 http://scholar.dlu.edu.vn/handle/123456789/722 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85041999529&partnerID=40&md5=5d83ae157fd554bf7bf60f874e597645 en Economics Bulletin 1545-2921 |
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Thư viện Trường Đại học Đà Lạt |
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English |
| topic |
Free cash flow Firm financial performance profitability Vietnam |
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Free cash flow Firm financial performance profitability Vietnam Nguyễn, Thanh Hồng Ân Nguyễn, Văn Tuấn Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam |
| description |
This paper examined the relationship between free cash flow and corporate profitability of Vietnamese listed firms. Based on the agency theory of free cash flow, several previous studies proposed a negative relationship between free cash flow and corporate profitability. In this study, we argue that the presence of information asymmetry in the financial market of developing economies may limit access to external sources of finance. Thus, free cash flow may serve as a cheaper alternative source of finance. This benefit may reduce, nullify, or even outweigh the agency cost caused by excess free cash flow. The empirical analysis results based on a sample of 208 Vietnamese listed nonfinancial firms in the period from 2012 to 2016 showed that free cash flow seems to have a positive effect on the corporate profitability of Vietnamese listed firms. |
| format |
Journal article |
| author |
Nguyễn, Thanh Hồng Ân Nguyễn, Văn Tuấn |
| author_facet |
Nguyễn, Thanh Hồng Ân Nguyễn, Văn Tuấn |
| author_sort |
Nguyễn, Thanh Hồng Ân |
| title |
Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam |
| title_short |
Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam |
| title_full |
Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam |
| title_fullStr |
Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam |
| title_full_unstemmed |
Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam |
| title_sort |
free cash flow and corporate profitability in emerging economies: empirical evidence from vietnam |
| publishDate |
2022 |
| url |
http://scholar.dlu.edu.vn/handle/123456789/722 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85041999529&partnerID=40&md5=5d83ae157fd554bf7bf60f874e597645 |
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1768305832291729408 |