An Application of X-score Model to Analyse Factors Affecting Financial Risk of Medical Companies Listed on Vietnam Stock Market

Abstract

This article analyses the factors affecting the company's financial risk measured by X-score model (Zmijewski, 1984), using data during 2016 and 2020 from 21 medical enterprises listed on the stock market of Vietnam. The study focuses on designing research hypotheses, using descriptive statistics analysis and applying regression models between the company's financial risk and the independent variables. After determining the appropriate model to examine the determinants of company's financial risk, the necessary tests to detect Multicollinearity, Autocorrelation, and Heteroskedasticity problems are performed. The analysis results show that listed medical companies has a negative relationship with company's profitability, asset's structure, efficiency and company's age. From the research findings, the study provides recommendations for medical companies listed on Vietnam stock market to efficiently manage the company's financial risk.

Enerji Belirsizliği ve Enerji Sektörü Getirileri İlişkisi

“…This ratio assesses the bank's capacity to meet its short-term obligations and represents the proportion of the firm's liquid assets to its overall capitalization. A rising liquidity value indicates a favorable indication, while a declining value implies increased liabilities and potential distress for the bank (Tran, 2021).…”

“…The results regarding IBs in Pakistan were quite encouraging (Ahmad & Hussain, 2021). Tran (2021) examined the EM Score and six financial ratios to predict financial distress in Vietnam. The EM Score showed impressive capability in accurately anticipating financial troubles in the Vietnamese market.…”