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 |
|---|---|
| Pages (from-to) | 63-98 |
| Number of pages | 36 |
| Journal | Australian Economic Papers |
| Volume | 55 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 1 Mar 2016 |
Bibliographical note
Publisher Copyright:© 2016 Flinders University and University of Adelaide and John Wiley & Sons Australia, Ltd.
Keywords
- Vietnam
- business enterprises
- business enterprises, foreign
- government ownership
- organizational effectiveness
- stock exchanges