Factors affecting cash holdings of non-financial firms listed on the Ho Chi Minh City stock exchange (HoSE): A Python-based approach
DOI:
https://doi.org/10.56097/binhduonguniversityjournalofscienceandtechnology.v8i4.368Keywords:
Cash holding ratio; HoSE; Non-financial; Python.Abstract
In the context of an increasingly volatile economy, cash flow management has
become critically important for businesses. This study focuses on analyzing both
macroeconomic and microeconomic factors that influence the cash holding ratio of 351
non-financial firms listed on the Ho Chi Minh Stock Exchange (HoSE) during the period
2015–2023. Employing the Feasible Generalized Least Squares (FGLS) model using
Python software, the findings indicate that the variables NWC (Net Working Capital), CF
(Cash Flow), LEV (Leverage), and ROA (Return on Assets) exhibit a positive relationship
with the cash holding ratio. In contrast, SIZE (Firm Size), FIC (Financial Constraints), and
INF (Inflation) show a negative relationship. Although FIC demonstrates a negative effect,
it is not statistically significant in the model. This study not only elucidates how firms adjust
their cash holdings in times of economic uncertainty but also proposes flexible and effective
cash management strategies to support business adaptation and sustainable development.
