Factors Affecting Financial Distress of Enterprises: Evidence from Basic Chemical Enterprises Listed in Vietnam

Tan Huu Nguyen (), Nam Pham Nhat Do, Khang Bui Minh Nguyen, Anh Minh Nguyen, Quan Anh Dinh and Nhi Uyen Vu
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Tan Huu Nguyen: Academy of Finance
Nam Pham Nhat Do: IC&Partners Limited Liability Company
Khang Bui Minh Nguyen: Hoa Phat Dung Quat Steel Joint Stock Company
Anh Minh Nguyen: Academy of Finance
Quan Anh Dinh: Academy of Finance
Nhi Uyen Vu: Academy of Finance

A chapter in Proceedings of the 5th International Conference on Research in Management and Technovation, 2025, pp 19-35 from Springer

Abstract: Abstract This study examines the factors influencing financial strain among listed basic chemical manufacturing companies in Vietnam over a six-year period from 2018 to 2023, with a particular focus on the impact of the COVID-19 pandemic. A dataset comprising companies listed on the HOSE and HNX exchanges was constructed and analyzed using Excel software. Descriptive statistics and regression analyses were conducted to investigate the relationship between various financial metrics and financial strain. The results indicate that Return on Equity (ROE) positively influences both the current ratio (CR) and quick ratio (QR), while the Leverage Ratio (LEV) negatively impacts CR. Furthermore, the Net Cash Flow from Operating Activities to Revenue Ratio positively affects CR. The study also finds that the COVID-19 pandemic has exacerbated the impact of the Leverage Ratio on financial strain. Based on these findings, recommendations are provided for listed companies to manage financial strain effectively.

Keywords: Financial distress; Basic chemical industry; COVID-19 pandemic; Regression analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-97-9992-3_2

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DOI: 10.1007/978-981-97-9992-3_2

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