IMPACT OF FINANCIAL RISK ON BUSINESS EFFICIENCY OF LISTED COMPANIES ON VIETNAM STOCK MARKET

Abstract

This study aims to evaluate the influence of financial risk on the business
efficiency of listed companies in Vietnam's stock market. To carry out the
research objective, the authors use the short-run solvency, net working capital,
and financial risk criteria proposed by Bathory. At the same time, the authors
conducted a quantitative analysis using a two-step GMM model, based on panel
data was collected from financial statements and financial statements of 563
companies listed on the Vietnam Stock market in the period 2012 - 2021. The
research results show that the business efficiency of enterprises through return
on assets and return on equity is positively affected by net working capital and
financial risk and is negatively impacted by short-run solvency. This result also
has some implications for improving business efficiency and financial risk
management of listed companies on the Vietnam stock market.