Factors affecting financial risks: Evidence from steel enterprises listed on Vietnam's stock market

Abstract

The purpose of this article is to analyze and determine the influence of factors on the financial risks of enterprises in the steel industry listed on Vietnam's stock market. The data of the article are collected and calculated from the financial statements of 26 steel companies listed on the Vietnamese stock market from 2013 to 2020. With the application of E-view software in quantitative analysis to build a panel data regression model, the article has built a regression model to determine the relationship of internal factors affecting the financial risks of steel industry enterprises listed on the Vietnamese stock market. The results indicate that short-term payment ratio, return on assets, asset turnover ratio, working capital turnover, receivables turnover, debt maturity structure, and the ratio of long-term assets have a negative effect on financial risks, while debt ratio has a positive effect on financial risks of steel companies listed on Vietnam’s stock market. The findings of this article are considered to be useful for business managers in helping them to make the right financial decisions to control risks and increase corporate value in their condition.