Free cash flow and firm performance of Vietnamese retail and consumer goods enterprises: the moderating role of growth opportunities
Published: August 7, 2026
Abstract
This study examines the impact of free cash flow on the performance of listed retail and consumer goods enterprises in Vietnam during the 2016–2025 period, while also testing the moderating role of growth opportunities. The empirical results show that both free cash flow and growth opportunities have direct positive effects on firm performance. Notably, the study provides evidence of the positive moderating role of growth opportunities, indicating that the performance-enhancing effect of free cash flow is stronger in firms with favorable investment prospects. In contrast, excessive financial leverage negatively affects performance, whereas revenue growth is a key driver of improved profitability. The findings suggest that managers should prioritize the use of internal funds and allocate capital to projects with high growth potential to optimize business performance.
Keywords
free cash flowfirm performancegrowth opportunitiesretail and consumer goods sector
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