Does the financial flexibility prevent stock price crash risk during COVID-19 crisis? Evidence from the Vietnamese stock market

Nguyen, Quang Khai; Dang, Van Cuong

doi:10.1016/j.heliyon.2023.e22287

Cited by 5 publications

(5 citation statements)

References 49 publications

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“…Similarly, FL exerts differing influences on firm value across countries, owing to variations in tax brackets and laws. In the context of this study, CG is defined as a set of processes, customs, policies, institutions and laws that shape the direction and control of a firm (Bruna et al, 2019;Nguyen & Dang, 2022c;Nguyen & Dang, 2023a;Nguyen, 2023b). According to Akbar et al (2017), a firm's business is managed under the guidance of a board of directors, which delegate the day-to-day management to the CEO and other staff.…”

Section: Literature Reviewmentioning

confidence: 99%

“…It is widely believed that a board with a larger size negatively affects firm value, with small board sizes generally thought to enhance it, as the benefits of increased monitoring by larger boards are outweighed by the drawbacks of poor decision-making and communication in larger groups (Ashfaq & Rui, 2019;Nguyen & Dang, 2023a;Nguyen & Dang, 2022a). CEO duality, where the CEO is also the Chairman of the Board, is perceived to improve firm value, as it is argued to enhance firm performance (Duru et al, 2016;Nguyen & Dang, 2022b;Nguyen & Dang, 2023b).…”

Section: Literature Reviewmentioning

confidence: 99%

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Impact of Corporate Governance and Financial Leverage on the Valuation of Vietnamese Listed Companies

Dao,

Thanh

2024

JAFAS

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This study investigates the effects of corporate governance (CG) and financial leverage (FL) on the valuation of firms listed in Vietnam. An analysis was conducted on a sample set containing 325 companies from the Ha Noi Stock Exchange over a three-year period (2018-2020), employing a correlational and non-experimental research design. It was found that an increase in board size negatively influences the value of these companies. In contrast, the phenomena of CEO duality, the presence of audit committees, larger firm size, greater FL, higher insider holdings, and improved return on assets were observed to positively affect firm valuation. Notably, the study delineates sector-specific impacts of CG and firm leverage, identifying divergent effects in the service and manufacturing sectors. For manufacturing firms, a larger board size adversely impacts value, whereas CEO duality, FL, the existence of audit committees, insider holdings, and firm size contribute positively. Within the service sector, a similar negative correlation was noted with board size, but FL and return on assets positively influenced firm value. The findings of this research provide valuable insights into the dynamics of firm valuation, offering guidance to investors, financial managers, and consultants. This investigation enriches the existing literature by highlighting the complex interplay between CG, FL, and firm valuation in the Vietnamese context. The discovery of the negative impact of larger board sizes on firm value challenges established beliefs and underscores the criticality of board composition for optimal firm performance.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Impact of Corporate Governance and Financial Leverage on the Valuation of Vietnamese Listed Companies

Dao,

Thanh

2024

JAFAS

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“…Accounting Information (Hu et al, 2015;Li et al, 2018;Ying et al, 2017). Systems play a vital role by providing historical accounting information and forecasting, covering aspects like financial accounting, management control, and financial analysis (Beasley & Salterio, 2001;Knechel & Willekens, 2006;Nguyen, 2023a).…”

Section: Introductionmentioning

confidence: 99%

Impact of ERP System Implementation on Accounting Information Quality in Vietnamese SMEs

Tran,

Nguyen

2024

JAFAS

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This research explores the influence of enterprise resource planning (ERP) system implementation on the quality of accounting information in Vietnamese small and medium-sized enterprises (SMEs). ERP systems, designed to unify and streamline information across various business processes such as accounting, finance, supply chain, and human resources, are critical in integrating internal and cross-business information. Given their complexity and cost, the effective implementation of ERP systems necessitates proficient users. This study, employing the Ordinary least squares (OLS) method for analysis, gathered data through purposive sampling from 145 users across 117 Vietnamese SMEs. The analysis, based on regression and complemented by t-tests, examined the hypothesized relationship between ERP implementation and accounting information quality enhancement. The findings reveal a significant positive correlation between ERP system implementation and improved accounting information quality, underscoring the importance of ERP systems in elevating the standard of accounting practices in SMEs. These insights are crucial for understanding the broader implications of ERP systems in business management and financial reporting.

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“…A company serves as a productive entity that efficiently manages economic resources to deliver goods and services to the community, aiming to generate profits and meet societal needs. It is responsible for handling economic resources, often referred to as factors of production (Arora, 2022;Nguyen & Dang, 2022b, 2023a, 2023b. The function of financing is pivotal for a company's success, as it involves endeavors to secure funds.…”

mentioning

confidence: 99%

“…Cordeiro & Tewari, 2015;Jo & Na, 2012;Nguyen, 2023a). Meanwhile, corporate governance advocates for corporate transparency to stakeholders(Van Overfelt, 2008).…”

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confidence: 99%

The Effect of Financial Performance, CRS and Corporate Governance on Firm Value

Thien Hai

2024

EFMR

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This research investigates the intricate relationship between financial performance, Corporate Social Responsibility (CSR), Corporate Governance (CG), and firm value within the context of the Vietnamese business landscape. Drawing upon the Efficient Market Semi-Strong Hypothesis, the study delves into the dynamic interplay of these factors to discern their collective impact on firm value. Utilizing a comprehensive dataset and employing robust statistical methodologies, our findings reveal a noteworthy and significant influence of financial performance on firm value. This phenomenon is interpreted through the lens of the Efficient Market Semi-Strong Hypothesis, highlighting the responsiveness of the market to information related to a firm's financial health. Moreover, the study extends beyond financial metrics to explore the broader dimensions of corporate behavior, incorporating CSR and CG as integral components of the analysis. The results underscore the interconnectedness of financial performance, CSR initiatives, and CG practices in influencing firm value. The simultaneous examination of these factors allows for a more holistic understanding of the mechanisms that underpin firm valuation.

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Does the financial flexibility prevent stock price crash risk during COVID-19 crisis? Evidence from the Vietnamese stock market

Cited by 5 publications

References 49 publications

Impact of Corporate Governance and Financial Leverage on the Valuation of Vietnamese Listed Companies

Impact of Corporate Governance and Financial Leverage on the Valuation of Vietnamese Listed Companies

Impact of ERP System Implementation on Accounting Information Quality in Vietnamese SMEs

The Effect of Financial Performance, CRS and Corporate Governance on Firm Value

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