VGU RESEARCH REPOSITORY
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https://epub.vgu.edu.vn/handle/dlibvgu/1672
Title: | Us trade policy uncertainty and inventory investment of Vietnamese listed firms | Authors: | Nguyen Vu Minh Trang | Keywords: | Us trade policy;Investment;Vietnam's economy | Issue Date: | 2023 | Abstract: | Policy uncertainty has a significant impact on long-term fixed capital investment in numerous prior studies, but its effect on short-term inventory investment is less understood. Additionally, prior studies on trade policy uncertainty (TPU) mainly focus on developed markets. This thesis fills the gap by examining the spillover effect of the US TPU on the inventory investment of listed manufacturing firms in an emerging market, Vietnam. I find that the US TPU positively affects the inventory investment of Vietnamese-listed manufacturing firms. That is, during the heightened US TPU, Vietnamese firms increase their investment in inventory to accommodate highly variable demand in the future and reduce operational costs. Further analyses show that external finance dependence, financial constraints, and market competition are the three aforementioned channels considerably amplifying the relationship between the US TPU and inventory investment of Vietnamese manufacturing firms whereas the investment irreversibility channel is irrelevant. This thesis also provides evidence that Vietnamese manufacturing firms tend to conserve by investing in inventory with low adjusting costs during the heightened US trade policy uncertainty and due to the stock-out avoidance motive and congestion costs, accumulating stockpiles to accommodate highly unexpected future demand. |
URI(1): | https://epub.vgu.edu.vn/handle/dlibvgu/1672 |
Appears in Collections: | Finance & Accounting (FA) Finance & Accounting (FA) |
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