THE ROLE OF MARKET STOCK PRICE AS A FINANCIAL DISTRESS PREDICTOR: SVM MODEL

Abstract

Financial distress prediction is not a new topic and it has attracted interests from researchers globally because of its importance in financial risks management practices to managers as well as investors, and creditors. However, questions about the significant role of predictors from inside or outside the companies’ accounting reports are still a challenge for researchers in different contexts. This article aims to test the role of market stock price as a financial distress predictor by applying a machine learning model known as SVM model for Vietnamese listed companies. The results of this study shows that SVM model with current stock price outperforms model without current stock price.