Research on Comparing Z-Score, O-Score and X-Score Models in Analyzing Factors Affecting Financial Risk in Medical Companies Listed on Vietnam Stock Market

Hau Thi Vu and Linh Thi Thuy Tran ()
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Hau Thi Vu: Thai Nguyen University of Economics and Business Administration
Linh Thi Thuy Tran: Thai Nguyen University of Economics and Business Administration

A chapter in Contemporary Economic Issues in Asian Countries: Proceeding of CEIAC 2022, Volume 2, 2023, pp 99-126 from Springer

Abstract: Abstract Based on financial risk studies, this chapter analyzes the factors affecting financial risk through the Z-score, O-score, X-score model and data of 21 medical enterprises listed on Vietnam stock market for the period 2016–2020. The study used descriptive statistical analysis, correlation and regression between the dependent variable Z-score (Altman, J Fin 23(4):589–609, 1968), O-score (Ohlson, J Account Res 18(1):109–131, 22:59–86, 1984) with other independent variables and control variables. The LS regression method (Least Squares) and hypothesis testing on EViews and Excel software were applied with a pooled data set of 105 observations of 21 listed medical companies. The research results comparing the Z-score, O-score and X-score models did not find a statistically significant relationship and economic significance between debt structure (DS), credit interest rate (IRS), listing location (PLA) and financial risk of listed medical enterprises. The financial structure expressed through equity ratio (NAR) has the greatest impact and simultaneously in the Z-score, O-score and X-score models. The X-score model (Zmijewski, J Account Res 22:59–86, 1984) is the most accurate model for identifying financial risks of listed medical companies with an accuracy rate of 80.0%

Keywords: Financial risk; Medical companies; Debt structure; Z-score; O-score; X-score; Vietnam stock market (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-981-99-0490-7_8

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