Abstract
A study on the impact of the factors reflect solvency to the bankruptcy risk of real estate companies: Evidence from Vietnam stock exchange
Highlights
This study is experimental research on analyzing the impact of the factors reflecting solvency to the bankruptcy risk of the Vietnam real estate companies
From the review of the above studies, in this study, we focus on determining the impact of factors reflecting solvency on the risk of bankruptcy in real estate business, including weaknesses: (1) Operating cash flows to average total liabilities ratio, (2) Net working capital to total assets ratio, (3) Owner’s equity to long-term debt, and (4) Current assets to current liabilities
With secondary data collected from the financial statements and annual reports of 45 real estate companies listed on the Vietnam Stock Exchanges (HoChiMinh Stock Exchange, 2018), (Hanoi Stock Exchange, 2018) and collected from the Securities Commission The State of Vietnam from 2008 to 2015, the authors conducted divided companies divided into two groups: Group 1 includes companies at risk of bankruptcy and Group 2 includes companies without risk bankruptcy
Summary
This study is experimental research on analyzing the impact of the factors reflecting solvency to the bankruptcy risk of the Vietnam real estate companies. We recognize the factors affecting the bankruptcy risk of the Vietnam real estate companies. Research data was derived from secondary data, taken from various items on the financial statements of the real estate companies listed on Vietnam’s stock exchange and was collected from the State Securities Commission of Vietnam which was highly transparent (State Securities Commission of Vietnam, 2019). Sample objects are collected: First we choose listed real estate companies because in Vietnam, only large-scale companies are eligible to list. Out the 55 listed real estate companies on both exchanges (HOSE and HNX), we selected 45 companies for the survey (after eliminating companies with insufficient data or lack of data).
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