Abstract
We examine the effect of ownership structure on firm performance, for firms listed on Vietnamese stock exchanges, using 2744 firm-year observations over the period from 2007 to 2012. We find a non-linear relationship between ownership structure and firm performance. State ownership has a convex relationship with firm performance. This paper finds that firm performance increases beyond 28.67 percent level of state ownership. Foreign ownership has a concave relationship with firm performance. We find that firm performance increases with an increase of foreign ownership up to a level of 43 percent and then decreases. Policy makers should encourage foreign ownership and widely dispersed state ownership in firms, which can help improve firm performance.
Original language | English |
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Pages (from-to) | 63-98 |
Number of pages | 36 |
Journal | Australian Economic Papers |
Volume | 55 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2016 |
Keywords
- Vietnam
- business enterprises
- business enterprises, foreign
- government ownership
- organizational effectiveness
- stock exchanges