Applyied logistic regression in credit ratings for construction sector enterprises listed on Vietnam stock exchange

Abstract

Credit ratings have become an important method of assessment not only for manufacturing firms, financial
institutions, but also for the economy in general. Researching and improving quality in credit ratings is essential
for banks, and the economy. This study applied Logistic models in credit rating 69 construction enterprises listed
on the stock exchange of Vietnam. The quantitative criteria used for Logistic model consists of 13 independent
variables are financial indicators. The result showed that the variable Revenue/Total assets had the strongest
impact. In the sample of 69 construction enterprises, nearly ¼ of the enterprises have credit risks. Finally, the
study proposes some recommendations on the credit risks of construction enterprises.