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Corporate Financial Distress of Industry Level Listings in Vietnam

Author

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  • Duc Hong Vo

    (Business and Economics Research Group, Ho Chi Minh City Open University, Ho Chi Minh City 7000, Vietnam
    Department of Finance, Asia University, Taichung 41354, Taiwan)

  • Binh Ninh Vo Pham

    (Business and Economics Research Group, Ho Chi Minh City Open University, Ho Chi Minh City 7000, Vietnam)

  • Chi Minh Ho

    (Business and Economics Research Group, Ho Chi Minh City Open University, Ho Chi Minh City 7000, Vietnam)

  • Michael McAleer

    (Department of Finance, Asia University, Taichung 41354, Taiwan
    Discipline of Business Analytics, University of Sydney Business School, Sydney 2006, Australia
    Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam, 3062 PA Rotterdam, The Netherlands
    Department of Economic Analysis and ICAE, Complutense University of Madrid, 28040 Madrid, Spain)

Abstract

Any critical analysis of the corporate financial distress of listed firms in international exchange would be incomplete without a serious dissection at the industry level, because of the different levels of risks concerned. This paper considers the financial distress of listed firms at the industry level in Vietnam over the last decade. Two periods are considered, namely during the Global Financial Crisis (GFC) (2007–2009) and post-GFC (2010–2017). The logit regression technique is used to estimate alternative models based on accounting and market factors. The paper also extends the analysis to include selected macroeconomic factors that are expected to affect the corporate financial distress of listed firms at the industry level in Vietnam. The empirical findings confirm that the corporate financial distress prediction model, which includes accounting factors with macroeconomic indicators, performs much better than alternative models. In addition, the evidence confirms that the GFC had a damaging impact on each sector, with the Health & Education sector demonstrating the most impressive recovery post-GFC, and the Utilities sector recording a dramatic increase in bankruptcies post-GFC.

Suggested Citation

  • Duc Hong Vo & Binh Ninh Vo Pham & Chi Minh Ho & Michael McAleer, 2019. "Corporate Financial Distress of Industry Level Listings in Vietnam," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 12(4), pages 1-17, September.
  • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:4:p:155-:d:269614
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    References listed on IDEAS

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    Cited by:

    1. Rafael Becerra-Vicario & David Alaminos & Eva Aranda & Manuel A. Fernández-Gámez, 2020. "Deep Recurrent Convolutional Neural Network for Bankruptcy Prediction: A Case of the Restaurant Industry," Sustainability, MDPI, Open Access Journal, vol. 12(12), pages 1-15, June.
    2. Akarsh Kainth & Ranik Raaen Wahlstrøm, 2021. "Do IFRS Promote Transparency? Evidence from the Bankruptcy Prediction of Privately Held Swedish and Norwegian Companies," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 14(3), pages 1-15, March.
    3. Chia-Lin Chang & Duc Hong Vo, 2020. "Contemporary Issues in Business and Economics in Vietnam and Other Asian Emerging Markets," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(6), pages 1-4, May.

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