The role of cash holdings during Covid-19 pandemic: Evidence from corporate risk-taking behavior of non-financial listed firms in Vietnam
DOI:
https://doi.org/10.15549/jeecar.v9i3.849Keywords:
COVID-19, Risk-taking behavior, Non-financial firmsAbstract
Vietnam has faced the long-lasting COVID-19 outbreak, which has imposed a negative impact on corporate activities, since 2020. This study aims to examine how the COVID-19 outbreak has influenced the risk-taking behavior of companies in Vietnam, investigating this relationship with the moderating role of cash holdings. We used the research data of non-financial listed firms in Vietnam during the period from quarter 1 2018 to quarter 2 2021. According to the Generalized Method of Moments approach, the study concludes that the COVID-19 pandemic period is negatively associated with corporate risk-taking behavior. In addition, there is a significant increase in the level of risk-taking behavior during the COVID-19 pandemic period by enterprises that have more cash holdings.
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