Abstract
The risk of bankruptcy is affected by many different factors. Therefore, identifying the groups of factors affecting bankruptcy risks, especially financial performance factors, are important and necessary. The study focused on the impact of financial performance on the bankruptcy risk of real estate companies listed on Vietnam’s stock exchange. Research data were collected from 44 real estate companies listed on Vietnam’s stock exchange from 2011 to 2017 with 308 observations. The study was conducted by the quantitative method based on the logistic regression model with the help of SPSS 25 specialized software. The research results show that Return on Assets (ROA), Return on Equity (ROE) and Total Asset Turnover (TAT) have significant reverse effects on bankruptcy risk, while Operating Profit Margin (OPM) is not a relevant factor. The accuracy rate of the overall predictive model is 90.9%. This study extends the scope of literature on the impact of financial performance on the bankruptcy risk of real estate companies. Moreover, this study offers the model of bankruptcy risk prediction of the listed real estate companies in Vietnam and recommends effective solutions to improve business efficiency, limit and prevent financial risks for listed real estate companies in Vietnam.
Highlights
Bankruptcy risk is a negative and unpleasant factor for any business
The main purpose of this study is to examine the impact of financial performance on bankruptcy risk From the results obtained, the study proposed of listed real estate companies
The statistical results based on the sample of 44 listed real estate firms showed that the num- Research results show that the average Return on Assets (ROA) and ber of real estate companies classified as being Return on Equity (ROE) of real estate companies is quite low, ROA is at risk of bankruptcy varied from year to year. approximately 2.5% and the ROE is approximately
Summary
Once an enterprise goes bankrupt, it affects the company directly, and many other related industries. This is evident in industries that play an important role in the national economy like the real estate industry in Vietnam. Under the impact of the global crisis, the real estate market has become quiet, less vibrant; the number of sluggish goods caused the drop profit for a long time. The business operation of real estate companies has been facing many difficulties, leading to bankruptcy risks. According to VOV.VN (2018), in the first 7 months of 2018, the number of dissolved real estate businesses increased by 75% compared to the same period of 2017
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
