 Unexpected money growth, nonfinancial firms as large shareholders and investment-cash flow relationship: Evidence from VietnamBao Khac Quoc Nguyen, Bao Cong Nguyen To and Nham Thi Hong Nguyen Journal of Economics and Business, 2022, vol. 119, issue C, No S0148619522000108 Abstract: This paper uses a sample of listed firms to raise questions as to how unexpected money growth affects firm-level investment in Vietnam, resembling tightening monetary policy impact. We find that most results that hold true in other countries also apply to Vietnamese firms during the years of our study. In particular, we find that higher cash flows are associated with higher investment when the assumption of tightening monetary policy is conducted, which is stronger in firms with external financial constraints. We also examine the impact of non-financial firm ownership and find that its presence reduces the investment impact of tightening monetary policy for affected firms. These results imply that the impacts of changes of the monetary stance on corporate investment seem to differ in a way that depends on cash flow and firm ownership characteristics. Keywords: Cash flow; Corporate investment; Non-financial firms as large shareholders; Tightening monetary policy; Unexpected money growth (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:119:y:2022:i:c:s0148619522000108 DOI: 10.1016/j.jeconbus.2022.106054 Access Statistics for this article Journal of Economics and Business is currently edited by Emanuele Bajo and Moritz Ritter More articles in Journal of Economics and Business from Elsevier |
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