The impact of cash flows, ownership and financial leverage on financial distress of non-financial enterprises in Vietnam

Abstract

Analyzing the variables of financial distress is crucial for reducing the risk of bankruptcy by either boosting operational and investment cash flow or decreasing financing cash flow. Also, foreign ownership strengthens operating cash flow. The likelihood of financial distress is however enhanced by greater managerial ownership. The thesis advises businesses to employ foreign ownership, and cash flow management and manage their usage of financial leverage as methods to lower the risk of financial distress.