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Proceedings of the 2021 International Conference on Research in Management & Technovation

Annals of Computer Science and Information Systems, Volume 28

Impact of Financial Risk on Business Efficiency Listed on The Stock Market in Vietnam

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DOI: http://dx.doi.org/10.15439/2021KM41

Citation: Proceedings of the 2021 International Conference on Research in Management & Technovation, Vu Dinh Khoa, Shivani Agarwal, Gloria Jeanette Rincon Aponte, Nguyen Thi Hong Nga, Vijender Kumar Solanki, Ewa Ziemba (eds). ACSIS, Vol. 28, pages 243–247 ()

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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 (1984). At the same time, the authors conducted a quantitative analysis using a two-step GMM model, based on panel data collected from financial statements and financial statements of 430 companies listed on the Ho Chi Minh Stock Exchange and the Hanoi Stock Exchange in the period 2012-2018. 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

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