Premium
Ownership Structure and Firm Performance Improvement: Does it Matter in the Vietnamese Stock Market?
Author(s) -
Hoang Lai Trung,
Nguyen Cuong Cao,
Hu Baiding
Publication year - 2017
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12185
Subject(s) - stock exchange , shareholder , business , corporate governance , incentive , state ownership , vietnamese , tobin's q , monetary economics , stock market , accounting , industrial organization , economics , finance , emerging markets , microeconomics , paleontology , linguistics , philosophy , horse , biology
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.