RESEARCH ON THE EFFECT OF FINANCIAL STRUCTURE ON FINANCIAL RISK OF VIETNAM STOCK MARKET LISTED COMPANIES

Abstract

The basic objective of this research is assessing the impact of the financial
structure on the financial risks of Vietnam stock market listed companies.To
accomplish the research objectives, the authors conducted a quantitative
analysis through the GMM models, based on the 2-component data set with
cross data and time series data which was collected from financial statements
and annual reports of 612 non-financial companies listed in the period of 2007 to
2018. The results showed that: (i) The financial balance is affected negatively by
the debt ratio, the short-term debt ratio and the long-tern debt ratio. (ii)
Solvency is affected negatively by the debt ratio, the short-term debt ratio. (iii)
Notably, we have not found evidence that the long-term debt ratio affects shortterm solvency of companies listed on the stock market of Vietnam.