Ownership structure and firm performance improvement: Does it matter in the Vietnamese Stock Market?
Ownership structure and firm performance improvement: Does it matter in the Vietnamese Stock Market?
Lai Hoang, T ; Nguyen, Cuong ; Hu, Baiding
Lai Hoang, T
Nguyen, Cuong
Hu, Baiding
Date
2017-12
Type
Journal Article
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Fields of Research
ANZSRC::3502 Banking, finance and investment , ANZSRC::3801 Applied economics
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.
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© 2017 The Economic Society of Australia