Determinants Influencing Liquidity of Listed Steel Firms in Vietnam

Abstract

This study is conducted to investigate the impact levels of determinants influencing liquidity of listed steel firms on Vietnam Stock Exchange. Data were collected from audited financial statements of 25 listed food processing firms from 2014 to 2017. This research employs the least squares method (OLS) and tests to determine the influence of factors on the liquidity of listed sample firms. The results indicate that return on assets (ROA), operating period (AGE) and asset structure (AS) have positive impacts on the liquidity. In contrast, the firm size and debt ratio has the opposite effects. Based on the findings, a number of recommendations are proposed to increase the liquidity ratio of listed firms in the future.