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Impacts of Ownership Structure on Firm Profitability among Listed Firms in Vietnamese Securities Exchange

The Journal of Accounting and Management

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Field Value
 
Title Impacts of Ownership Structure on Firm Profitability among Listed Firms in Vietnamese Securities Exchange
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Creator Hue, Nguyen Thi Minh
Lam, Dang Tung
 
Description The paper studies relationships between: ownership structure and leverage and profitability of firms using data of all listed firms in the two exchanges in Vietnam. The empirical findings show negative relationships between state ownership and firm profitability and positive relationships between foreign ownership and firm profitability. In addition, the relationships of leverages with ownerships resulted logically with firm profitability when leverages are considered as a tool of financial management. Particularly, leverage is high in high state ownership firms, and the high leverage firms have low profitability. The findings are in an inverse way with regard to foreign ownership. The paper contributes more empirical evidence to the policies which potentially enhance low state ownership and high foreign ownership in Vietnamese firms.
Keywords
Ownership structure, firm profitability, leverage, listed firms
References
[1] John S. Earle, “Post-privatization ownership structure and productivitiy in Russia Industrial Enterprises”, Working Paper, Stockholm School of Economics, Central European University, 1998.[2] Xu, X., &Wang, Y., “Ownership structure and corporate governance in Chinese stock companies”, China Journal of Accounting Research, 6 (1999) 2, 75-87.[3] Lê Đức Hoàng, “Tác động của cấu trúc sở hữu tới hiệu quả hoạt động của các doanh nghiệp ở Việt Nam”, Luận án tiến sĩ, Trường Đại học Kinh tế Quốc dân, 2015.[4] Claessens, S. and Djankov, S., “Ownership concentration and corporate performance in the Czech Republic”, Journal of Comparative Economics, 27 (1999), 498-513.[5] Wei Z., F. Xie, S. Zhang, “Ownership structure and Firm Value in China’s Privatized Firms: 1991-2001”, Journal of Financial and Quantitative Analysis, 40 (2004) 1, 87-108.[6] Jensen, M.C. and Meckling, W.H., “Agency Costs and the theory of the firm”, Journal of Accounting and Economics, 3 (1976), 305-360.[7] Le, T. and Chizema, A., “State ownership and Firm performance: Evidence from the Chinese listed firms”, Organization and Markets in Emerging Economies, 2 (2011) 2, 72-90.[8] Megginson, W.L and Netter J., “From state to market: A survey of empirical studies on privatization”, Forthcoming, Journal of Economics Literature, 2001.[9] Saul E., J. Hanousek, J. Svejnar, “The effects of privatization and ownership in transition economies”, Journal of Economics Literature, 47 (2008) 3, 699-728.[10] Kasseeah, H., “What determines the leverage decision of Chinese firms?”, Journal of the Asia Pacific Economy, 13 (2008) 3, 354-374.[11] Qi, D., Wu, W. and Zang, H., “Shareholding structure and corporate performance of partially prvatized firms: Evidence from listed Chinese companies”, Pacific-Basin Finance Journal, 8 (2000) 5, 587-610.
Abstract: The paper studies relationships among: ownership structure, leverage and profitabilily of firms with the data of all listed firms in the two exchanges in Vietnam. The empirical findings show the negative relationships between state ownership and firm profitability and the positive relation between foreign ownership and firm profitability. In addition, the relationships of leverages with ownerships resulted logically with firm profitability when leverages are considered as a tool of financial management. Particularly, the leverage is high in the high state ownership firms, and the high leverage firms have low profitability. The findings are in the inverse way regard to foreign ownership. The paper contribute more empirical evidences to the policies which enhance low state ownership and high foreign ownership in Vietnamese firms.
 
Publisher Vietnam National University, Hanoi
 
Date 2017-03-15
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://js.vnu.edu.vn/EAB/article/view/4044
 
Source VNU Journal of Science: Economics and Business; Vol 33 No 1
Chuyên san Kinh tế và Kinh doanh; Vol 33 No 1
2588-1108
2615-9287
 
Language eng
 
Relation https://js.vnu.edu.vn/EAB/article/view/4044/3792
 
Rights Copyright (c) 2017 VNU Journal of Science: Economics and Business