The impact of internal factors on the bankruptcy risk of enterprises listed on the Ho Chi Minh city stock exchange

Abstract

This study focuses on evaluating the impact of internal factors on the bankruptcy risk of enterprises listed on the Vietnamese Stock Market. The research data collected comprises 350 non-financial enterprises listed on the Vietnamese Stock Market in 2023. Using logit regression and OLS regression methods, the study clarifies the impact of internal factors on enterprises' bankruptcy risk, especially in the post-COVID-19 context- a period when many enterprises faced significant financial pressure due to high interest expenses, declining cash flow, and contracting consumer demand. The study not only provides a practical insight into the current financial situation of enterprises but also contributes to the research gap regarding internal factors affecting enterprise viability in the Vietnamese market. Based on the analysis results, the study proposes several solutions to help enterprises mitigate bankruptcy risk, including: strengthening equity to improve financial autonomy; limiting the expansion of high-risk projects or over-reliance on financial leverage; and optimizing costs and efficiently utilizing assets to increase profitability.