Issue: Số 14 - Tháng 5 - 2026Tài chính - Ngân hàng - Bảo hiểm
Applying Principal Component Analysis to Examine the impact of cash flow on the operating performance of listed companies: Evidence from companies listed on the Hanoi Stock Exchange
Published: June 28, 2026
doi:10.62831/nckh.2026.183.v1
Abstract
This study examines the impact of cash flow on the operating performance of non-financial firms listed on the Hanoi Stock Exchange (HNX) during the 2020–2024 period. The research dataset comprises 1,177 observations from 264 enterprises after excluding financial firms and processing the data. Principal component analysis (PCA) is employed to address multicollinearity among cash-flow-related variables, followed by the application of panel regression models, including Pooled OLS, fixed effects model (FEM), random effects model (REM), and feasible generalized least squares (FGLS). Firm performance is measured using ROA, ROE, ROS, GPM, NPM, and OPM, while cash flow and liquidity are represented by CFO, CFI, CFF, FCF, and CASH. The empirical results indicate that the FGLS model is the most appropriate after correcting for heteroskedasticity. In particular, when ROA is used as the performance indicator, ROE, ROS, FCF, and CASH have positive and statistically significant effects at the 1% significance level, whereas OPM and firm size exert negative effects. The findings suggest that effective cash flow management plays an important role in enhancing the profitability and operating performance of firms listed on HNX.
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