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 mode 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.

Keywords:

Financial risk, Debt structure, Liquidity, Operation efficiency, Profitability, Financial structure.

JEL Classification:

G32, G33.

How to Cite:

Hau Thi Vu, Linh Thi Thuy Tran* and Thuong Ha Nguyen. An Application of X-score Model to Analyse Factors Affecting Financial Risk of Medical Companies Listed on Vietnam Stock Market. [ref]: vol.20.2022. available at: https://refpress.org/ref-vol20-a5/