The effects of trade payables on the performance of firms listed on the Vietnam Stock Exchange

This study investigates the impact of trade payables on the operational efficiency of firms listed on the Vietnamese stock exchange, with particular attention to the moderating role of liquidity in this relationship. Panel data covering the period 2011 - 2022 are employed and analyzed using ordinary least squares (OLS), fixed effects (FEM), random effects (REM), and two-stage instrumental variable regression techniques. The empirical findings indicate that trade payables are generally associated with lower operational efficiency. However, this adverse effect is substantially attenuated when firms maintain higher levels of liquidity. Overall, the results provide meaningful insights into the role of liquidity in shaping the efficiency outcomes of trade payables and contribute to the literature on corporate financial management and working capital dynamics.