Factors Affecting Corporate Liquidity: Evidence from Listed Construction Companies in Vietnam

The construction industry has grown rapidly in recent years, but the outstanding debt in payment, especially the difficulty in paying the principal and interest of bonds in recent years, has caused great frustration among investors. The authors use Stata software for panel data to estimate the regression equations. The analysis aims to examine the factors affecting liquidity of 29 listed construction companies in the period 2015–2021. The research results show that financial leverage (LEV), profitability on working capital (ROA), total asset turnover (ART), and company growth rate (GWS) are the main factors that have a strong impact on corporates’ liquidity.