USE Z-SCORE IN FORECASTING FINANCIAL DISTRESS FOR LISTED COMPANIES BY INDUSTRIAL GROUPS ON THE VIETNAM STOCK MARKET

Abstract

The purpose of this study is to examine the effects of cash flows from operating activities, profitability, and financial leverage on financial distress that may occur in listed companies in Vietnam. The sample of this study includes companies listed in the industry group on the Ho Chi Minh City Stock Exchange (HOSE) 2020. The sampling technique used is intentional sampling. Altman's (1968) Z-score model is used to determine whether a company is in financial distress. The data analysis technique used is logistic binary regression. The results of the regression analysis show that only profitability and financial leverage have an impact on the financial distress of the company. The operating cash flows have no effect on financial distress.