Factors impact on short-term solvency of firms: Evidence from Ho Chi Minh stock exchange’s listed firms

Abstract

The paper examines the influence of micro factors and macro factors on short-term solvency of
Vietnamese listed enterprises. The authors collect data from 305 companies listing on Ho Chi Minh Stock
Exchange (HOSE) during a period of 11 years, starting at 2011 and using regression fixed effect model. The
research results indicate that the firm’s size, leverage and interest rate have a negative impact while assets
growth, return growth and assets structure have a positive impact on short-term solvency. Base on these
result, we give some solutions and implications to improve the short-term solvency of Vietnamese listed
firms. These solutions focus on the impact of firm’s characteristic on short-term solvency