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The influence of firm life cycle on firm risk-taking: evidence of Vietnam

Author

Listed:
  • Nguyen-Quynh-Nhu Ngo

    (Ton Duc Thang University)

  • Cam-Nguyen Nguyen

    (Ton Duc Thang University)

  • Nguyen-Nhu-Ngoc Ngo

    (Western Sydney University)

  • Thanh-Khang Nguyen

    (Ton Duc Thang University)

Abstract

Our study investigates risk-taking behavior among Vietnamese listed companies during 20 years (2000–2020). We acknowledge that regardless stages of companies, firms have tendency to take more risks, and that risk-taking activities in the course of the introduction and maturity phases can have both negative and positive forces on current and future performance. Additionally, the paper explored the moderating forces of the Z-score and HHI Index on this relationship. The paper contributes to the state-of-the-art by supplying empirical evidence about the relation between corporate life phases and willingness to take risk in Vietnamese non-financial firms. It provides a firm life cycle methodology to aid managers in developing appropriate strategies and sheds new light on the moderating effects of Z-score as well as market competition on the link.

Suggested Citation

  • Nguyen-Quynh-Nhu Ngo & Cam-Nguyen Nguyen & Nguyen-Nhu-Ngoc Ngo & Thanh-Khang Nguyen, 2024. "The influence of firm life cycle on firm risk-taking: evidence of Vietnam," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(3), pages 691-726, September.
    • Handle: RePEc:spr:inrvec:v:71:y:2024:i:3:d:10.1007_s12232-024-00463-w
    DOI: 10.1007/s12232-024-00463-w
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    More about this item

    Keywords

    Firm life cycle; Firm risk-taking; Developing countries; Z-score; Market competition; Moderating effect; Covid pandemic;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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