Thi Thanh Hoang

Type of the article: Research Article

Abstract
This paper examines the influence of inventory management on firm performance, applying Hansen’s threshold estimation method across firm size. It uses panel data, including 149 industrial manufacturing firms listed on HOSE, HNX, and UPCOM markets in Vietnam from 2014 to 2024. In small firms (SIZE ≤ 24.4679), WIP (work in progress) and ITO (inventory turnover) positively affect ROA, while FIN (finished goods) has a negative effect. As SIZE increases (24.4679 < SIZE ≤ 25.0912), WIP reverses to a strong negative effect, FIN turns positive, and ITO loses statistical significance. In large firms (SIZE > 25.0912), RAW (raw materials) appears as a significant negative factor on ROA, WIP continues to have a negative effect but at a decreasing level, and FIN reverses to a negative effect. These findings suggest that SIZE is important in moderating the relationship between inventory and firm performance. The control variables also show significant effects: TANG (tangible assets) negatively affects firm performance, while CASH has a positive impact, confirming the role of working capital balance. Regarding managerial implications, SIZE is an important moderator in the relationship between inventory and firm performance. For small firms, exploiting the benefits of WIP and increasing inventory turnover can improve profitability. Meanwhile, maintaining a reasonable WIP level becomes urgent for medium and large firms to avoid wasting resources and delaying production. For the largest firms, more attention should be paid to RAW to limit the risk of capital congestion, while maintaining a suitable level of FIN to ensure a smooth supply chain.

Type of the article: Research Article

Abstract
This study examines the impact of investment efficiency on firms’ financial distress risk in ASEAN. Using 30,440 firm-year observations from listed firms in Vietnam, Malaysia, Thailand, Indonesia, Singapore, and the Philippines during 2015–2024, financial distress risk is measured by the O-score and Z-score. Listed firms are classified into overinvestment and underin-vestment groups based on the model residuals. Control variables are return on total assets, leverage, firm size, and growth rate. The results obtained using the FGLS estimation method indicate that overinvestment and underinvestment increase financial distress risks for ASEAN firms as measured by the O-score. Overinvestment increases financial risk (coefficient 0.3-0.63), with the most severe impact in Thailand and Malaysia (coefficient 0.95-0.99) and Vietnam (coefficient 0.39). High debt is consistently the biggest risk factor (coefficient >7.1), while profitability is the strongest risk mitigation factor (coefficient <–6.6). By contrast, Z-score results show higher safety for overinvestment and insignificant underinvestment. However, the impact of investment efficiency on financial distress risk, whether linear or non-linear, differs across countries. The results indicate an inverted U-shaped relationship in Indonesia, the Philippines, Thailand, and Vietnam, while no statistically significant evidence of a non-linear relationship is found for Malaysia and Singapore. In the Philippines and Thailand, the non-linear effect is strong, with investment-deficit coefficients of 1.9416 and 1.6463, respectively, indicating a sharp increase in financial risk in the early stages of investment cuts. These findings provide valuable empirical evidence for firms in mitigating financial distress risk and enhancing sustainable value.