The objective of this paper is to examine how banking relationship influences on performance of public listed firms in Vietnam. With a sample of 465 companies listed in Vietnam observed in period 2007 -2010 and using regression method, the research finds that firm performance decreases as the number of bank relationships increases. If a firm establishes strongly short-term credit financing relationship with banks, the firm's performance reduces. On the contrary, if a firm has strongly long-term credit financing relationship with banks, its performance increases. The effectiveness of using total assets is worse as a firm has strongly overall credit financing relationship with banks. Additionally, the study also indicates that asset tangibility structure has negative relationship with firm's ROE, while assets have negative association with ROA. Turnover has positive association with firm performance. Finally, firms with higher state shares have less effective than ones with lower state shares.

This paper explores the structural relationship among asset investment diversification, business diversification and the bankruptcy risk of firms. Asset investment diversification is divided into two components, namely related and unrelated asset investment diversification, while business diversification includes related and unrelated business diversification. In the hypothetical relationship, business diversification is proposed to play a mediating role to explain the effect of asset investment diversification on bankruptcy risk. Specifically, related and unrelated asset investment diversification affect bankruptcy risk through two mediators, namely related and unrelated business diversification. Hence, it is vital to employ the general linear structural model (GSEM) with panel data on 470 businesses publicly listed in Vietnam from 2008 to 2017. Surprisingly, the empirical results show that both related and unrelated asset diversification have positive impacts on bankruptcy risk. Nevertheless, only related business diversification plays a mediating role between related asset diversification and bankruptcy risk, while unrelated business diversification has an insignificant mediating effect on the relationship between unrelated asset diversification and bankruptcy risk.