Open AccessWorking Capital Requirements Determinants - Case of Listed Plastic Firms in Vietnam
Author(s) -
Nhung Lê Thị Kim,
Trang Tran Thi Thu
Publication year - 2022
Publication title -
webology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.259
H-Index - 18
ISSN - 1735-188X
DOI - 10.14704/web/v19i1/web19238
Subject(s) - working capital , accounts payable , stock exchange , panel data , estimation , business , econometrics , monetary economics , economics , finance , payment , management
Our paper explores determinants of plastic firms’ working capital requirements (WCR). The study used panel data obtained from 37 listed plastic firms on Vietnamese stock exchange for the period 2016-2020. Different estimation methods were employed to test all the hypothesis, namely, pooled OLS, FEM, REM, SGMM and Quantile regression. The research result shows that the internal factors such as: receivables, cash, inventory, revenue growth, return on total assets, operating cycle have a statistically significant positive relationship with the working capital requirements of plastic companies while accounts payable, firm size have a statistically significant negative relationship with the former. In terms of external factors, inflation has a statistically significant positive relationship with WCR while changes in exchange rate have a negative correlation (significantly) with that of listed plastic companies.