Abstract
The purpose of the research is to identify the impact factors on the likelihood of financial distress of Vietnamese companies in the period from 2014 to 2019. Accordingly, the paper has used several research models and estimation methodologies with regards to a data set of 623 Vietnamese enterprises. The research applied regression model to pinpoint macro and micro factors that influence an enterprise financial distress. These elements are financial leverage, company size, net working capital to current assets ratio, retained earnings to total assets ratio and pre-tax profit ratio and interest on total assets. The dependent variable is the probability of occurrence or non-occurrence of financial distress of Vietnamese companies. By taking advantage of Bayesian Binary Logistic regression, the results reveal that financial distress (DIS) level increases as leverage (LEV) increases. While company size (SIZE), the ratio of net working capital to short-term asset (WC), the ratio of retained earnings to total assets (RETA) as well as the ratio of profit before interest and taxes to total assets (NITA) together have a negative impact on financial distress (DIS).
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Trung, N.D., Thanh, B.D., Phuong, B.N.M., Lan, L.T. (2022). Factors Influencing the Financial Distress Probability of Vietnam Enterprises. In: Ngoc Thach, N., Kreinovich, V., Ha, D.T., Trung, N.D. (eds) Financial Econometrics: Bayesian Analysis, Quantum Uncertainty, and Related Topics. ECONVN 2022. Studies in Systems, Decision and Control, vol 427. Springer, Cham. https://doi.org/10.1007/978-3-030-98689-6_42
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