Ownership Structure and Firm Performance Improvement: Does it Matter in the Vietnamese Stock Market?

Lai Trung Hoang, Cuong Cao Nguyen, Baiding Hu

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This study examines the effects of ownership structure on firm performance of manufacturing companies listed on the Ho Chi Minh Stock Exchange using the system-GMM estimator. The empirical results show a cubic relationship between managerial ownership and Tobin's Q, that is, positive, negative and positive, meanwhile block ownership has no impact on firm performance. This implies that internal managerial incentives play a more important role than shareholders' external monitoring in improving corporate governance quality. We also found an inverted U-shaped relationship between state ownership and Tobin's Q, indicating that partial privatisation possibly is an efficient way to improve firm performance.

Original languageEnglish
Pages (from-to)416-428
Number of pages13
JournalEconomic Papers
Volume36
Issue number4
DOIs
Publication statusPublished - 1 Dec 2017
Externally publishedYes

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