Impact of Cash Flow Management on Shareholder Value of Listed Real Estate Companies in Vietnam

Abstract

Many businesses have overlooked cash flow management and have resulted in failure or bankruptcy. According to surveys, up to 60% of losses are related to cash flow in the company. In this research, a group of secondary data from a selection of 56 listed real estate companies in Vietnam during the period of 2012-2019 is used to examine the relationship between cash flow management and shareholder value. The authors use a linear regression model and analysis to test for correlation between the variables. The results show that there is a non-significant relationship between the cash value-added and earning per share and there is a significant relationship between cash value-added and market value-added. Furthermore, the results also show a positive correlation between operating cash flow and market value-added. It is recommended that the scope of research should be expanded to other sectors and areas of the economy.