Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5107391 | Research in International Business and Finance | 2017 | 43 Pages |
Abstract
This research examines the effect of banking system reform which is measured by foreign bank's presence on investment-cash flow relation in a context of a small transition economy. The U-shape relation between investment and cash flow is found. We also find evidence that the presence of foreign banks in Vietnam results in decreasing in dependence on local banks and has changed corporate investment behaviors. Company investments are less reliant on internal cash flow in the post reform period. Although overinvestment of state controlled firms is not reduced but underinvestment problem of non-state-controlled listed firms is mitigated due to better accessibility to bank loans. The investigated relation between investment and leverage is robust for this conclusion.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Tu Thi Kim Thoa, Nguyen Thi Uyen Uyen,