| dc.description.abstract | This paper examines the association between the stock liquidity in Vietnam stock exchange and the likelihood of bankruptcy risk by using a dataset of 354 publicly listed firms over the period from 2014 to 2018. To reflect the good relationship, financial ratios were identified to select six control variables including return on assets (ROA), total assets turnover (TAU), long-term debt to total assets (LDTA), cash flow from operation ratio (CFOR), firm size (SIZE) and firm age (AGE). Descriptive statistics and regression models are conducted to determine this issue in which fixed effects model is the main method.
After analyzing data, we find that the firm with lower liquid stock will have higher default risk, though the prediction of the liquidity measure on the bankruptcy probability among industries is not homogeneous. Furthermore, default risk also has a negative impact on TAU, whereas there is a positive link with ROA, CFOR, and SIZE. | en_US |
