Foreign ownership and national governance quality affect liquidity risk – case in Vietnam

The paper aim to examine the impact of foreign ownership and national governance quality on liquidity risk in Vietnam’s listed commercial banks from 2010 2021, covering COVID-19 outbreak. Using two-step generalized method moments regression model (GMM), findings indicate that deteriorates risk, while has a positive effect risk. In particular, study highlights because unpredicted demand for cash withdrawals by customers, which led shortage holdings banks. Consistent with agency neo-institutional theories, are robust series endogenous checks using an alternative method, such as pooled ordinary least squares, model.