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JEL Classification System

G32, L25, G15

Abstract

This study investigates the impact of operating cash flow and working capital management on firm performance, with a particular focus on how these relationships are moderated by industry characteristics in an emerging market context. Using a dataset of 1,480 firm-year observations from 185 Vietnamese enterprises between 2016 and 2023, the analysis employs panel data regression with feasible generalized least squares estimation. The results reveal that operating cash flow and accounts payable turnover positively influence return on assets, whereas accounts receivable turnover has a negative effect. Inventory turnover is not statistically significant. Notably, the magnitude and direction of these effects vary across sectors: the food and beverage and construction and installation industries demonstrate distinct financial dynamics, underscoring the moderating role of industry-specific operational structures. Unlike prior studies that typically focus on single-industry samples or neglect contextual variation, this research provides novel empirical evidence on the non-universality of financial performance relationships. The findings contribute to financial management theory and offer practical guidance for tailoring working capital and cash flow strategies to sectoral realities in emerging economies.

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