Determinants of Working Capital Management on Firm Value - Evidence From VietNam Stock Market

Based on building a model of factors of working capital management that impact on firm value, and the fact that the firm value is measured by the market price of shares,the paper has found out the causes of the increase or decrease in firm value.The author uses a sample consisting of 50 firms (selected at random) listed on Vietnam\'s stock market in 2012, by using multiple regression model. The results show that factors that affect firm value are ratio of turnover to short-term assets, current liabilities to total assets, short-term payment (positive effect); current assets to total assets (negative effect).Thereby,the author draws the key policy implications, creating a scientific basis for strategic planning of working capital management to enhance firm value