This study examines the impact of cash flow on operational efficiency among non-financial firms listed on the Vietnam stock market from 2010 to 2019. Findings show that operating cash flow significantly enhances operational efficiency, as indicated by ROA and ROE, with a more pronounced effect in firms with state ownership. To control for endogeneity, the analysis employs the two-stage least squares and Generalized Method of Moments, confirming the robustness of results across variations in firm size, firm age, and estimation methods. Positive effects are also observed from investment opportunities and firm growth, while firm size and firm leverage negatively affect performance. The study underlines the role of cash flow in improving efficiency and suggests practical recommendations for regulators and managers.
