Factors Affecting Short-term Solvency of Securities Companies: The Case of Vietnam

Abstract

A linear regression model supplied in the form of two-dimensional array data was used to investigate the factors affecting the short-term solvency of Vietnamese securities companies. The data is examined with 48 securities companies from 2012 to 2019. The study employed STATA 14 software to evaluate and select regression models, test, and estimate regression models using array data from 235 observations. The findings revealed four characteristics that influence the short-term solvency of securities businesses in Vietnam: the size of the securities company and the quick ratio have a positive impact. In contrast, the debt ratio and the working capital turnover period have a negative effect.