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Original Research

FACTORS AFFTECTING THE CASH FLOW TO THE FIRM (FCFF) – EVIDENCE FROM LISTED REAL ESTATE ENTERPRISES IN VIETNAM

HAU DINH THI HAI 1, MAI DINH THI NGOC 2, HA PHAM THI THU 3, HA NGUYEN THI THU 4, and DUNG VU XUAN 5.

Vol 20, No 01 ( 2025 )   |  DOI: 10.5281/zenodo.14785025   |   Author Affiliation: Trade Union University, Hanoi, Vietnam 1,2; Academy of Finance, Hanoi, Vietnam 3,4; Thuongmai University, Hanoi, Vietnam 5.   |   Licensing: CC 4.0   |   Pg no: 555-565   |   Published on: 31-01-2025

Abstract

We employ the free cash flow to the firm (FCFF) in this study as a stand-in for the company's cash flow. The financial statements of 78 real estate enterprises that were listed between 2016 and 2023 on the Vietnam stock exchange made up the research sample. Regression analysis and the SPSS26 software program were employed in the investigation. The findings indicate that: Inventory (INV) has a negative influence on FCFF; Accounts Payable (AP); and Accounts Receivable (AR) have a considerable impact in the same direction. The study uses two control variables, the research results show that Enterprise Size (SIZE) has a positive effect and Enterprise Age (AGE) has a slight negative effect on FCFF. The results also show that the two variables Short-term debt solvency ratio (CR) and Cash conversion cycle (CCC) have no influence on FCFF. The research results are useful suggestions for administrators to enhance effective cash flow management in real estate enterprises in Vietnam.


Keywords

Real Estate Enterprises; Cash Flow; Free Cash Flow to the Firm (FCFF).