The Determinants of Financial Risk: Evidence from Vietnamese Listed firms

  • Thai Hoang Nguyen economics and business university
  • Lai Thi Minh Trang
  • Nguyen Thuy Ngan
Keywords: CEO’s Characteristics, financial risk, listed firms.


Abstract: In recent years, the world economy in general and Vietnam in particular, have been heavily affected by the COVID pandemic. Many countries are forced to stop economic activity in areas where the COVID-19 epidemic is complicated. In Vietnam, the proportion of enterprises suspending business increased significantly in 2020 (81.8% compared to 2019). Facing this situation, firms must pay more attention to financial management issues and predict the financial risks. This study aims to investigate the impact of CEO’s characteristics on financial risk. This study used data from 454 firms listed on HNX and HOSE, with a total observation of 1,362 from 2018 to 2020. The results indicate that the age and education level of the CEO are positively correlated with financial risks. In addition, control variables such as profit margin, dividend payout ratio, the ratio of financial leverage, and the growth rate of the business have a significant impact on financial risk.