Author(s): Nguyen Huu Tan
Liquidity affects the performance and credit risk of companies. Companies with liquidity difficulties will suffer negative impacts on performance and may lead to bankruptcy. The paper examines the influence of factors on liquidity of steel listed companies in Vietnam. The study uses regression techniques in panel data using data collected from steel companies listing on the stock market in Vietnam during 2015-2020. Liquidity of steel listed companies is measured by current assets to current liabilities, whereas firm size, debt ratio, profitability, growth rate of asset and revenue, asset structure, cash flow, market value, GDP growth rate and inflation are used as independent variables. The research results indicate that asset growth rate and asset structure have a positive effect on corporate’s liquidity, whereas debt ratio has a negative effect on corporate’s liquidity and the remaining independent variables have no correlation with firm’s liquidity. Based on the research results, the author propose the some policy implications.