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Current Issue

Journal Cover
Vol. 16 No. 3 (2014)
Home » Vol. 16 No. 3 (2014) » Article Detail
VOL. 16 NO. 3 (2014) DOI: 10.33301/2014.16.03.04

Modeling of Financial Distress Probability for Vietnamese Listed Companies

Authors: Phu Kim Yen, Nguyen Manh Hiep

Abstract:

To date, an in-depth discussion of the factors influencing financial distress in Vietnam is still lacking. This paper explores the determinants of corporate financial distress of Vietnamese firms listed on the Hochiminh Stock Exchange using a dynamic logit model. We find that financially distressed enterprises have highly leveraged capital structures with low liquidity and low profitability. The financial distress probability is more pronounced for firms with small capitalization as well as those newly established and less profitable. With the hope of improving market efficiency, we finally come up with a simple, convenient model which helps investors estimate a firm’s financial distress probability without information cost.
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Other Articles in this Issue:

  • Corporate Image in the Context of Organizational Transformation: An Integrative Theoretical Model

    Authors: Nguyen Thi Hoang Yen

  • Characteristics of Innovation in Vietnamese Firms: An Exploratory Research

    Authors: Phan Thi Thuc Anh

  • Employment Transformation in the Vietnamese Economy in Light of the Lewis-Fei-Ranis Growth Model of A Labor-Abundant Economy

    Authors: Nguyen Trung Kien

  • The Cycle of Transparency, Accountability, Corruption, and Administrative Performance: Evidence from Vietnam

    Authors: Tran Thi Bich

  • Key Issues for FDI Policy Re-formulation in Vietnam

    Authors: Kenichi Ohno, Le Ha Thanh

JOURNAL OF ECONOMICS AND DEVELOPMENT - NATIONAL ECONOMICS UNIVERSITY
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ISSN: 1859-0012 (Print) | e-ISSN: 2815-5602 (Online)
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