RESEARCH THE FACTORS AFFECTING THE RISK OF BANKRUPTCY OF ENTERPRISES LISTED ON VIETNAM STOCK MARKET

Abstract

This paper investigates the relationship between the risk of bankruptcy and internal factors within 439 firms listed on the Vietnamese stock exchange. We
measure bankruptcy risk of listed companiesby the adjusted Zscore index model by Edward I.Altman. The research sample includes 439 enterprises listed on the
Vietnamese stock market with 5268 observations over 12 years from 2008 to 2019. Stata 14 software is used to run regression according to three models: Ordinary
least square model (OLS); Fixed effects model (FEM) and random-effects model (REM), performed tests on choosing the appropriate model, test for heterogeneous
variance and implementing plans to overcome the weaknesses of the model. The research results show that: Six factors of research model the impact on the risk of
bankruptcy, including: firm size, the return on total assets, current ratio, financial leverage, capital intensity and the size of audit company. Research results show that
there are three factors affecting the risk of bankruptcy and explain 86.78% of the fluctuations of bankruptcy risk of firms. The return on total assets and the current
ratio have a positive impact on the Zscore index, reducing the risk of bankruptcy of listed companies, financial leverage has opposite effects to the Zscore index, which
increases the risk of bankruptcy of listed companies. Research results are important evidence for managers in operating and managing businesses, for shareholders
when making future capital investment decisions.