Research Conducted at Ho Chi Minh City Open University Has Provided New Information about CDC and FDA (Banking Uncertainty and Corporate Financial Constraints).

A research study conducted at Ho Chi Minh City Open University in Vietnam has examined the impact of uncertainty in the banking system on corporate financial constraints. The study analyzed financial data from commercial banks and listed companies in Vietnam from 2008 to 2022 and found that banking uncertainty increases corporate financial constraints. The relationship between uncertainty and financing constraints is more pronounced for non-state-owned firms, firms with more intangible assets, and firms listed on the Hanoi stock exchange. Additionally, macroeconomic shocks such as the financial crisis and the COVID-19 pandemic can strengthen the effect of banking uncertainty on financing constraints. The study concludes that banking uncertainty exacerbates financial constraints by raising the cost of external financing, rather than by lowering firm performance. This research has been peer-reviewed and is published in the International Journal of Finance & Economics. [Extracted from the article]