Financial distress and probabilistic prediction of bankruptcy for Vietnamese listed firms in transportation sector

Abstract

This study investigated the predictive power of the bankruptcy predicting models when it was applied to Vietnamese emerging market of listed firms in the transportation sector. The logistic regression was used in this paper to measure the prediction for listed firms. The assessment of model was done by utilizing the panel data for the post-crisis period over five years from 2009 to realize how Vietnamese firms can overcome the difficult time. 35 companies involved in the present model with 166 observations containing 36 financial distressed firms‟years. The result of the final regression model is expected to bring the valuable prediction for related parties to get the timely notices and adjust the monitoring plans or managing strategies to deal with the coming issues.