Impact of corporate governance and ownership on business performance: A case study of Vietnam

  • Received December 24, 2021;
    Accepted March 24, 2022;
    Published April 26, 2022
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ppm.20(2).2022.09
  • Article Info
    Volume 20 2022, Issue #2, pp. 96-106
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The study is conducted to investigate the impact of corporate governance and ownership on business performance in listed firms on the Vietnamese Stock Exchange. The study employed the general regression method (GLS) with a sample of 506 listed firms in the period 2008–2020. The study demonstrated the impacts of corporate governance and ownership on firm performance. First, the size of the Board of Directors (BOD), state ownership, and foreign ownership have a positive impact on firm performance. On the contrary, the ratio of independent members in the BOD and the percentage of members of the BOD who are major shareholders have a negative impact on firm performance. An interesting finding is that the BOD with female members, the duality of director and chairman, and the ratio of independent members have a negative impact on the Board of Management. In contrast, firms with no female members in the BOD have a positive relationship with firm performance. The empirical results and recommendations in this study might be good instructions for firms to improve their firm performance.

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    • Table 1. Summary of variables in the research model
    • Table 2. Descriptive statistics of variables
    • Table 3. Correlation matrix
    • Table 4. Regression results
    • Table 5. Regression results considering the role of female members in the BOD
    • Conceptualization
      Thi Xuan Hong Nguyen
    • Data curation
      Thi Xuan Hong Nguyen
    • Formal Analysis
      Thi Xuan Hong Nguyen
    • Funding acquisition
      Thi Xuan Hong Nguyen
    • Investigation
      Thi Xuan Hong Nguyen, Hung Ngoc Dang
    • Project administration
      Thi Xuan Hong Nguyen
    • Validation
      Thi Xuan Hong Nguyen
    • Visualization
      Thi Xuan Hong Nguyen
    • Writing – original draft
      Thi Xuan Hong Nguyen
    • Writing – review & editing
      Thi Xuan Hong Nguyen
    • Methodology
      Hung Ngoc Dang
    • Resources
      Hung Ngoc Dang
    • Software
      Hung Ngoc Dang
    • Supervision
      Hung Ngoc Dang