# Optimal Cash Holding Ratio for Non-Financial Firms in Vietnam Stock Exchange Market

## Abstract

**:**

## 1. Introduction

## 2. Literature Reviews and Hypothesis

**Hypothesis**

**1 (H1):**

## 3. Data and Methodology

#### 3.1. Data and Sample Collection

#### 3.2. Variables

#### 3.2.1. Dependent Variable

#### 3.2.2. Threshold and Explanatory Variables

#### 3.2.3. Control Variables

#### 3.3. Models and Estimation Methods

## 4. Results and Discussions

#### 4.1. Descriptive Statistics for Variables in the Model

#### 4.2. Stationary Test Results of Variables in the Model

#### 4.3. Threshold Regression Results

_{0}hypotheses for zero, one, and two thresholds, respectively. Table 3 provides results of single-threshold, double-threshold and triple-threshold tests.

## 5. Conclusions and Recommendations

## Funding

## Acknowledgments

## Conflicts of Interest

## References

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Variables | Observations | Mean | Median | SD | Min | Max |
---|---|---|---|---|---|---|

ROA | 3060 | 0.0955 | 0.0850 | 0.0991 | −1.6451 | 1.1362 |

CASH | 3060 | 0.1049 | 0.0625 | 0.1189 | 0.0001 | 0.9546 |

SIZE | 3060 | 26.6859 | 26.6279 | 1.4318 | 22.6384 | 31.6017 |

MB | 3060 | 1.1012 | 0.8640 | 0.8965 | 0.1001 | 9.2005 |

LEV | 3060 | 0.4852 | 0.5043 | 0.2306 | 0.0056 | 0.9982 |

Variables | LLC | IPS | ||
---|---|---|---|---|

t-Statistic | p-Value | z-Statistic | p-Value | |

ROA | −8.6771 | *** 0.0000 | −3.4253 | *** 0.0000 |

CASH | −9.4776 | *** 0.0000 | −5.3907 | *** 0.0000 |

SIZE | −7.6484 | *** 0.0000 | −2.2162 | ** 0.0133 |

MB | −17.2837 | *** 0.0000 | −3.5020 | *** 0.0000 |

LEV | −13.0545 | *** 0.0000 | −2.9177 | *** 0.0018 |

Threshold Value | F-Statistics | Test Critical Values | |||
---|---|---|---|---|---|

F-Statistic | p-Value | 1% | 5% | 10% | |

Single-threshold test | |||||

0.0993 | 21.3377 | *** 0.004 | 18.1411 | 14.3497 | 12.8103 |

Double-threshold test | |||||

0.0993 | |||||

0.1715 | 10.1255 | 0.156 | 17.4561 | 13.5491 | 17.4561 |

Triple-threshold test | |||||

0.0722 | 7.4726 | 0.334 | 18.1409 | 13.1731 | 10.6866 |

0.0993 | |||||

0.1715 |

Regression Coefficient | Estimated Value | OLS SE | t_{OLS} | White SE | t_{White} |
---|---|---|---|---|---|

$\widehat{{\beta}_{1}}$ | 0.4078 | 0.0670 | *** 6.2620 | 0.0801 | *** 5.4124 |

$\widehat{{\beta}_{2}}$ | 0.1556 | 0.0187 | *** 8.8011 | 0.0340 | *** 5.1182 |

Regression Coefficient | Estimated Value | OLS SE | t_{OLS} | White SE | t_{White} |
---|---|---|---|---|---|

$\widehat{{\theta}_{1}}$ | 0.0135 | 0.0021 | *** 5.7517 | 0.0032 | *** 3.7767 |

$\widehat{{\theta}_{2}}$ | −0.0169 | 0.0042 | *** −5.8027 | 0.0057 | *** −4.9657 |

$\widehat{{\theta}_{3}}$ | −0.1146 | 0.0153 | *** −7.4835 | 0.0199 | *** −5.7470 |

Year | CASH_{i,t} of ≤9.93% | CASH_{i,t} of >9.93% | ||
---|---|---|---|---|

Number | Percentage (%) | Number | Percentage (%) | |

2008 | 212 | 69% | 94 | 31% |

2009 | 189 | 62% | 117 | 38% |

2010 | 197 | 64% | 109 | 36% |

2011 | 193 | 63% | 113 | 37% |

2012 | 195 | 64% | 111 | 36% |

2013 | 179 | 58% | 127 | 42% |

2014 | 184 | 60% | 122 | 40% |

2015 | 186 | 61% | 120 | 39% |

2016 | 202 | 66% | 104 | 34% |

2017 | 211 | 69% | 95 | 31% |

Total | 1948 | 64% | 1112 | 36% |

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## Share and Cite

**MDPI and ACS Style**

Nguyen Thanh, C.
Optimal Cash Holding Ratio for Non-Financial Firms in Vietnam Stock Exchange Market. *J. Risk Financial Manag.* **2019**, *12*, 104.
https://doi.org/10.3390/jrfm12020104

**AMA Style**

Nguyen Thanh C.
Optimal Cash Holding Ratio for Non-Financial Firms in Vietnam Stock Exchange Market. *Journal of Risk and Financial Management*. 2019; 12(2):104.
https://doi.org/10.3390/jrfm12020104

**Chicago/Turabian Style**

Nguyen Thanh, Cuong.
2019. "Optimal Cash Holding Ratio for Non-Financial Firms in Vietnam Stock Exchange Market" *Journal of Risk and Financial Management* 12, no. 2: 104.
https://doi.org/10.3390/jrfm12020104