Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303760 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 10 [Issue:] 1 [Article No.:] 2111812 [Year:] 2022 [Pages:] 1-17
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study aims to determine the impact of Corporate Governance on the relationship between the macro and micro factors causing financial distress in 240 Vietnamese listed non-financial firms. The study also investigates the marginal benefits of different corporate governance practices by applying an endogenous switching regression model (ESRM). The research clarifies that a firm with strong corporate governance practice has a low probability of financial distress compared to a weak corporate governance firm. Moreover, the risk of financial distress is significantly reduced when improving the corporate governance practice. This paper contributes empirical evidence on the predominant benefit of strong corporate governance practices and marginal benefit in risk mitigation in enhancing corporate governance. The article suggests that Vietnamese firms should implement strong corporate governance to overcome the risk of financial distress.
Subjects: 
Corporate governance
financial distress
emerging countries
endogenous switching regression
JEL: 
G34
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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