The study on the influence of liquidity ratios on business performance in listed Vietnamese enterprises amidst the covid-19 context

Tác giả: Lê Thị Thu Hương và Lê Thị Ngọc Mai, Tạp chí/ nơi công bố: Khoa học và công nghệ, trường Đại học Công nghiệp Hà Nội, Thời gian công bố: 11/2024

The ability to pay and profitability play crucial roles in assisting enterprises in achieving growth objectives, maximizing profits, and enhancing shareholder income. Proper liquidity management can ensure timely debt repayment and bolster profitability. This study aims to analyze the relationship between liquidity management and business performance of enterprises. It is conducted using data from 673 listed companies on the HNX and HOSE stock exchanges from 2015 to 2023, comprising a total of 5905 observations. The analysis is carried out to measure the impact of liquidity management on business performance (represented by the ROA index) of these enterprises. The results of the study, based on regression models using OLS, FEM, REM, and GLS methods, indicate that business performance (ROA, ROE) is positively influenced by firm size (SIZE), quick liquidity ratio (QR), and cash ratio (CAR), and negatively affected by the ratio of debt to total assets (LEV), total liquidity ratio (TL), and short-term debt liquidity ratio (CR).