Fourth add testing for regression models Although the authors have actively

Fourth add testing for regression models although the

This preview shows page 77 - 80 out of 84 pages.

Fourth, add testing for regression models. Although the authors have actively approached the analytical method but the regression models of the study only stops with the basic testing, such as F- test, t-test for the meaning of the variables and Hausman test to select appropriate models. Therefore, the next research could make some test such as the FEM, REM or Pooled data for more accurate results. Fifth, diversify the types of variables. Future research should take into account adding non-financial variables. The elements listed in models of this research are internal. Future research should consider including external factors as well. For instance, elements of macroeconomics like interest rate, inflation, GDP, exchange rate, unemployment rate,...are highly recommended so as to build regression model using pooled data and time series. Through this the researchers can be able to have insight into whether the internal or external have more significant an impact on financial risk of a company. Non-financial determinants like the number of employees or whether the firm has a CFO or not. These factors indicate the company's level of concern about financial risk. More notably, the research of Minh.V (2012) has claimed that firms with CFOs pay more attention to financial risk and their risk are actually lower. Future researchers can regard this as a potential way to carry out research about financial risk. 70
Image of page 77
71
Image of page 78
CONCLUSION Our research is based on the awareness of the financial risk status in 134 manufacturing companies in Vietnam, which has had diversified and unpredictable movements throughout the years. The financial risks management of corporations in Vietnam currently still remains many contentious problems as this requires knowledge, skills and experiences of financial managers to control and minimize the financial risks in their companies. The selected firms are non-financial ones and completely listed on the HOSE, lying in the five main business types which are real estates, utilities, industrial goods and services, food products and buildings and constructions. The research is conducted using the quantitative method, which has not been applied regularly in Vietnam. Meanwhile, this technique has been chosen for many foreign studies in both developed and developing countries. Nevertheless, those former studies mainly focused on the financial risks of SMEs, so there would be identical in some aspects such as the size, scope, scale and the amount of capital. This research, in contrast, does not put attention to any specific type of companies, but to randomly pick up different enterprises with different sizes. In addition, a number of new variables are also chosen and considered as factors affecting financial risks, besides the familiar ones. After going into investigation and running two models, the three questions mentioned in the first part have been answered. To figure out the first question, two models are run with the aim of determining which factors influencing financial risks. The Bathory model shows R 2 equals 16.8% with FR being the dependent variable and includes four significant variables which are capital structures, current ratio, quick ratio and inventory turnover. These variables all have negative effects to
Image of page 79
Image of page 80

You've reached the end of your free preview.

Want to read all 84 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture