scholarly journals Ownership structure and corporate diversification decision: a study of Vietnamese listed firms

2016 ◽  
Vol 13 (3) ◽  
pp. 226-233 ◽  
Author(s):  
Duc Nam Phung ◽  
Thi Bich Nguyet Phan ◽  
Thi Lien Hoa Nguyen ◽  
Thi Phuong Vy Le
Keyword(s):  
Ownership Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Emerging Market ◽  
Foreign Ownership ◽  
State Ownership ◽  
Corporate Diversification ◽  
Diversification Strategy ◽  
Listed Firms ◽  
The Impact

This research examines the impact of the ownership structure on corporate diversification decision of listed firms in Vietnam over the period of 2007 and 2012. The empirical results from logit model show that while state ownership has positive impact on corporate diversification decisions of the firms, foreign ownership has negative impact on corporate diversification decision of the firms. This implies that government ownership tends to encourage corporate diversification strategy, while foreign ownership may plays monitoring role and discourage corporate diversification strategy in emerging market context.

scholarly journals The structure of corporate ownership and firm performance: Sri Lankan evidence

2013 ◽  
Vol 11 (1) ◽  
pp. 723-734 ◽  
Author(s):  
Athula Manawaduge ◽  
Anura De Zoysa
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Ownership Structure ◽  
Emerging Market ◽  
Ownership Concentration ◽  
Sri Lankan ◽  
Accounting Performance ◽  
Listed Firms ◽  
Strong Positive Relationship ◽  
The Impact

This paper examines the impact of ownership structure and concentration on firm performance in Sri Lanka, an emerging market in Asia. The study estimates a series of regressions using pooled data for a sample of Sri Lankan-listed firms to investigate the impact of ownership concentration and structure on firm performance based on agency theory framework, using both accounting and market-based performance indicators. The results of the study provide evidence for a strong positive relationship between ownership concentration and accounting performance measures. This suggests that a greater concentration of ownership leads to better performance. However, we found no significant impact using market-based performance measures, which suggests the existence of numerous market inefficiencies and anomalies. Furthermore, the findings of the study show that ownership structure does not have a significant distinguishable effect on performance.

Anti-Corruption Campaign and Firm Financial Performance: Evidence From Vietnam Firms

2022 ◽  
pp. 0193841X2110727
Author(s):  
Khanh Hoang ◽  
Hieu T. Doan ◽  
Thanh T. Tran ◽  
Thang X. Nguyen ◽  
Anh Q. Le
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Steering Committee ◽  
State Ownership ◽  
Private Firms ◽  
Online Newspapers ◽  
Firm Financial Performance ◽  
Business Operations ◽  
Corruption Index ◽  
The Impact

Background Corruption affects businesses in various ways. Anti-corruption, on the other hand, can improve the institutions of the country as well as business operations. Vietnam, as a socialist-oriented country with an ongoing high-profile anti-corruption campaign, provides us a unique setting to evaluate the impacts of anti-corruption on corporate performance. Objectives We address two questions: (1) what is the effect of anti-corruption on the performance of private-owned firms in Vietnam? and (2) how does anti-corruption influence the performance of firms with state ownership (FSOs) in Vietnam? Research design To investigate the impact of anti-corruption on performance of firms with different ownership settings, we use the establishment of the Central Anti-Corruption Steering Committee of Vietnam as a quasi-natural experiment for difference-in-differences analysis. We generate treatment effects of private holding and the state block ownership. To validate the findings, we construct a novel news-based anti-corruption index from Vietnamese online newspapers and use it in a robustness test to evaluate anti-corruption’s impacts on firm performance. Results and Conclusions We find a positive impact of the anti-corruption campaign on private firms’ performance, supporting the social norm perspective of how corruption affects businesses. The empirical results indicate a negative impact of the campaign on FSOs’ performance. The findings suggest that anti-corruption benefits private firms via improving the institutional quality of the country while improving the financial transparency of FSOs. Our study provides a method for measuring anti-corruption which is virtually unobservable and absent in the literature. The findings have implications for policymaking in contemporary Vietnam.

scholarly journals The impact of ownership structure, financial distress on earnings management: The case of Vietnam

2020 ◽  
Author(s):  
Hung Dang Ngoc ◽  
Dung Tran Manh
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Financial Distress ◽  
Audit Quality ◽  
Foreign Ownership ◽  
State Ownership ◽  
Ownership Concentration ◽  
Regression Methods ◽  
Study Results ◽  
The Impact

The paper examines the effect of ownership structure on profit management in Vietnam. In this study, we explore how three components of ownership structure - the degree of ownership concentration of managers, foreign ownership ratio and state ownership ratio - affect earnings management. In addition, we also consider whether ownership structure affects profit management during financial constraints.<b> </b>We used REM, FEM, GLS, and GMM regression methods. The study results have shown that ownership structure with foreign ownership has a positive effect on earnings management, whereas one with a proportion of state ownership has a contradicting effect. While the degree of ownership concentration does not affect the profit management, in the context of financial restrictions, the ownership ratio has an impact on the management of earnings. Controllable variables in the model, such as firm size, financial leverage, growth rate, profitability and audit quality, all have an impact on earnings management. The results could, potentially, be the basis to help businesses in restricting earnings management behaviour.

scholarly journals The impact of ownership structure, financial distress on earnings management: The case of Vietnam

2020 ◽  
Author(s):  
Hung Dang Ngoc ◽  
Dung Tran Manh
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Financial Distress ◽  
Audit Quality ◽  
Foreign Ownership ◽  
State Ownership ◽  
Ownership Concentration ◽  
Regression Methods ◽  
Study Results ◽  
The Impact

The paper examines the effect of ownership structure on profit management in Vietnam. In this study, we explore how three components of ownership structure - the degree of ownership concentration of managers, foreign ownership ratio and state ownership ratio - affect earnings management. In addition, we also consider whether ownership structure affects profit management during financial constraints.<b> </b>We used REM, FEM, GLS, and GMM regression methods. The study results have shown that ownership structure with foreign ownership has a positive effect on earnings management, whereas one with a proportion of state ownership has a contradicting effect. While the degree of ownership concentration does not affect the profit management, in the context of financial restrictions, the ownership ratio has an impact on the management of earnings. Controllable variables in the model, such as firm size, financial leverage, growth rate, profitability and audit quality, all have an impact on earnings management. The results could, potentially, be the basis to help businesses in restricting earnings management behaviour.

scholarly journals The Productivity and Efficiency of Vietnamese Securities Firms, 2009 to 2017

2020 ◽  
Vol 7 (4) ◽  
pp. 101
Author(s):  
My Tran ◽  
Malcolm Abbott
Keyword(s):  
Negative Correlation ◽  
Ownership Structure ◽  
Positive Impact ◽  
Significant Negative Correlation ◽  
Foreign Ownership ◽  
Productive Efficiency ◽  
Size Regulation ◽  
Institutional Shareholders ◽  
The Impact

This paper provides an examination of the impact of size, regulation and ownership structure on the productivity and efficiency of 53 securities firms in Vietnam in the years 2009 to 2017. The results show that the size of the firms and regulation has an impact on the performance of the firms. Foreign ownership also has a significant negative correlation with the firms’ efficiency, while majority ownership by domestic Vietnamese, individual shareholders (as opposed to ownership by institutional shareholders) has a positive impact. In contrast, there is no significant correlation between ownership by banks and the productive efficiency of the firms.

Ownership Structure and Corporate Diversification

2006 ◽  
Vol 8 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Yi Zhang ◽  
Xi Li
Keyword(s):  
Firm Performance ◽  
Local Government ◽  
Ownership Structure ◽  
Central Government ◽  
Agency Problems ◽  
State Ownership ◽  
Corporate Diversification ◽  
Listed Firms ◽  
Firm Diversification ◽  
Diversification Strategies

This paper examines the motivation and impact of corporate diversification in Chinese listed firms. We find that in local government owned-firms there is a non-linear relationship between the level of firm diversification and state ownership. As state ownership increases from zero, the level of diversification decreases. After state ownership reaches a certain level, the level of diversification increases as state ownership increases. There is no evidence that ownership is related to corporate diversification in non-state-owned firms or central government-owned firms. We also document that diversification is negatively related to firm performance in local government-owned firms. However, there is no evidence that diversification is negatively related to the firm performance in non-state-owned firms or central government-owned firms. Our findings suggest that agency problems are responsible for local government owned-firms taking value-reducing diversification strategies.

Ownership structure and analysts’ forecast properties: a study of Chinese listed firms

2016 ◽  
Vol 16 (1) ◽  
pp. 54-78 ◽  
Author(s):  
Sun Liu
Keyword(s):  
Ownership Structure ◽  
Emerging Market ◽  
Forecast Accuracy ◽  
State Ownership ◽  
Managerial Ownership ◽  
Content Type ◽  
Listed Firms ◽  
Pyramidal Ownership ◽  
And Control ◽  
The Relationship

Purpose The purpose of this paper is to investigate the association between ownership structure and the properties of analysts’ forecasts in China’s unique corporate setting. Design/methodology/approach Multiple regression models were used to examine the influence of ownership structure mechanisms on analysts’ forecast properties for listed Chinese firms during the period 2008-2012. Findings The paper finds that analysts’ forecast accuracy is higher for listed firms with high levels of foreign ownership and managerial ownership. However, the complex pyramidal ownership structure could make corporate information less transparent and then increase the complexity of forecasting; hence, it results in less precise analysts’ forecasts. Interestingly, the relationship between state ownership and analysts’ forecast properties appears to be non-linear (an inverted U-shape), and the inflection point at which the relationship becomes negative occurs at state ownership over 45 per cent. Originality/value To the best of the author’s knowledge, this paper is the first to investigate the influence of ownership structure mechanisms on the properties of analysts’ forecasts in an emerging market, and the findings provide some insight on how the properties of analysts’ forecast might be shaped by certain ownership and control features in the context of concentrated state ownership and complex pyramidal ownership structure.

Macroeconomic factors and stock returns: Evidence from the emerging market of Asia

2018 ◽  
Vol 5 (3) ◽  
pp. 16-20
Author(s):  
Muhammad Asad Saleem Malik ◽  
Saher Touqeer ◽  
Shumaila Zeb
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Negative Impact ◽  
Positive Impact ◽  
Emerging Market ◽  
Consumer Price Index ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Significant Negative Impact ◽  
The Impact

This study examines the impact of macroeconomic variables on stock returns of Pakistan, India and Sri Lanka for the period of 1997-2014. GMM approach is used to analyze the impact of macroeconomic variables on stock returns. Variables of the study were T-Bills, Exchange Rate, Consumer Price Index (CPI) and the Industrial Production Index (IPI). The results of study show that T-bills rate has significant negative impact while Exchange rate has a significant positive impact on the Stock Returns of the study period.

scholarly journals Corporate Governance and Stock Price Synchronicity: Empirical Evidence from Vietnam

2020 ◽  
Vol 8 (2) ◽  
pp. 22
Author(s):  
Anh Huu Nguyen ◽  
Thu Minh Thi Vu ◽  
Quynh Truc Thi Doan
Keyword(s):  
Corporate Governance ◽  
Stock Price ◽  
Fixed Effects ◽  
Negative Impact ◽  
Positive Impact ◽  
Foreign Ownership ◽  
Managerial Ownership ◽  
Board Size ◽  
Stock Price Synchronicity ◽  
The Impact

This research is conducted to investigate the impact of corporate governance on stock price synchronicity in the context of the Vietnamese market. The paper tests four hypotheses proposing the effect of four crucial components of corporate governance including board size, board independence, managerial ownership, and foreign ownership on stock price synchronicity. The study sample includes 247 non-financial listed companies on the Ho Chi Minh Stock Exchange (HOSE) in Vietnam over a period of five years from 2014 to 2018. The fixed effects model is employed to address econometric issues and to improve the accuracy of the regression coefficients. The research results show the positive impact of board size and foreign ownership but the negative impact of managerial ownership on stock price synchronicity. This study confirms the viewpoint that stocks in the market move more together when the firms’ corporate governance gets better. In other words, the research findings suggest that low synchronicity signifies the corporate intransparency and weak information environment and vice versa. From this, the paper provides a new insight to managers on how to improve stock price synchronicity with corporate governance.

scholarly journals Diversification Strategy and Stock Price Crash Risk：Evidence from China

2020 ◽  
Vol 15 (3) ◽  
pp. 94
Author(s):  
Jun Qi ◽  
Wenying Diao
Keyword(s):  
Stock Price ◽  
Audit Quality ◽  
Positive Association ◽  
Crash Risk ◽  
Corporate Diversification ◽  
Diversification Strategy ◽  
Significant Positive Association ◽  
Analyst Coverage ◽  
Listed Firms ◽  
The Impact

This study examines the impact of the corporate diversification strategy on the stock price crash risk. Using a large sample of Chinese A-share listed companies for the period 2003-2017, we find the stock price crash risk significantly increases when the operation strategy of a firm changes from a specialized operation to a diversified operation or the degree of diversified operations deepens. We also find that our results are stronger for non-state-owned listed firms, but not significant for state-owned firms. Furthermore, we find that the significant positive association between diversification and crash risk is more pronounced for firms with low external audit quality and low analyst coverage. Our study suggests that the diversification of operating strategy matter in determine stock price crash risk.

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