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6 (1) 2016

Do Vietnamese state-dominated listed firms face finance constraints?


Author - Affiliation:
Le Long Hau - Cantho University , Vietnam
De Ceuster Marc J.K. - Universiteit Antwerpen, Prinsstraat 13, 2000 Antwerpen
Plasmans Joseph - Universiteit Antwerpen, Prinsstraat 13, 2000 Antwerpen
Le Tan Nghiem - Cantho University , Vietnam
Ha Minh Tri - Ho Chi Minh City Open University , Vietnam
Corresponding author: Ha Minh Tri - tri.hm@ou.edu.vn

Abstract
Using accounting data of listed firms on the Vietnamese stock market this study documents that listed Vietnamese firms still face finance constraints, even after the introduction and rapid growth of the equity markets and the privatization wave that started since 1992. Contrary to most of the existing literature, especially large state-dominated firms were documented to be significantly more financially constrained.The cash flow sensitivity differences between the statedominated and private firms are economically large but statistically not significant.These findings are still consistent for both stock exchanges of Vietnam (HOSE and HNX).


Keywords
Vietnam; finance constraints; state-dominated

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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.6.1.114.2016
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