The Journal of Asian Finance, Economics and Business (JAFEB) 제7권 제5호 (p.19-29)

The Impact of Operating Cash Flow in Decision-Making of Individual Investors in Vietnam’s Stock Market

키워드 :
Decision Making,Individual Investors,Operating Cash Flow,Operating Cash Flow Growth,Profit Growth

목차

Abstract
1. Introduction
2. Literature Review
3. Hypothesis, Data and Research Methods
   3.1. Research Hypothesis
   3.2. Research Data
   3.3. Research Design
4. Results and Discussion
5. Conclusions and Recommendations
   5.1. Conclusions
   5.2. Recommendations
References

초록

The paper examines the impact of information about cash flow from operating activities of firms listed on Vietnam’s stock market to the decision making of individual investors. Data were collected from interviews with 160 individual investors about their investment decisions based on information on profit growth and cash flow growth from operating activities. T-test was conducted to research on Vietnam’s stock market - a market considered as information that is not really public, transparent and ineffective. The research results show that: (1) investors do not care about cash flow from operating activities when making investment decisions if the company’s profits grow positively, (2) information about cash flow from operating activities only affects the decisions of individual investors once profit growth is negative, and (3) conflicting information between profit growth and cash flow growth from business activities significantly affects the confidence and comfort of investors in Vietnam’s stock market when they make investment decisions. Then, the study points out the mistake of investors when making investment decisions, and offers recommendations to investors when making investment decisions, not only concerned with profit growth, but also paying special attention to cash flow growth, especially cash flow from the company’s business operations.