Developments in corporate governance: The case of Vietnam

Abstract

Corporate governance practices have changed significantly across the world in the past three decades. Spectacular corporate failures during this period have acted as a catalyst for the development of codes and guidelines that have resulted in the global acceptance of a ‘best practice’ model. This study assesses the relevance of such a ‘one size fits all model’ for the developing nation state of Vietnam. The findings of this analytical paper is that there are three key elements (government, international institutions and the nature of business) that are pertinent and central to corporate governance developments in the country. We also find that the quality of corporate governance in Vietnam is at a medium level when compared to international practices. Vietnam still has a long way to go to construct and embed effective corporate governance policies and practices and promote ethical business behaviours and sound decision making at board level.

Manufacturers' efficiency disparity: a comparative analysis in the Southeast Asian region

“…The CASH factor positively, significantly (at 1%) affects marketability efficiency of Vietnamese-listed manufacturers. The possible reasons for the importance of holding cash for Vietnamese-listed manufacturers' marketability efficiency are the low-capital market development and the poorly protected shareholder's rights in Vietnam stock markets (Lien and Holloway, 2014). According to La Port et al.…”

“…The CASH factor positively, significantly (at 1%) affects marketability efficiency of Vietnamese-listed manufacturers. The possible reasons for the importance of holding cash for Vietnamese-listed manufacturers' marketability efficiency are the low-capital market development and the poorly protected shareholder's rights in Vietnam stock markets (Lien and Holloway, 2014). According to La Port et al (2000aPort et al ( , b, 2002 and Dittmar et al (2003), when investor protections are low in the ineffective markets, firms hold cash to pay dividends to enhance the attractiveness of the stocks to increase firms' market values and marketability efficiency.…”

Selfish personalities influencing start-up intention and motivation: a study of Vietnam

“…It may be harder to follow a "fast life" in established organizations, such as public organizations and corporations, because it usually requires a long time to get to high positions via a bureaucratic promotion process. In addition, the less developed legal system in Vietnam is offering gaps for making fast money, even in big state-owned banks (Lien & Holloway, 2014). It makes start-up attractive to people high in narcissism and Machiavellianism, helping them become CEO in a short time, instead of years, and making dirty money with little concerns of being punished.…”

A Triple of Corporate Governance, Social Responsibility and Earnings Management

“…This leads to an excessive need to develop and improve corporate governance practices that can constrain managers towards behaving more ethically and responsibly to society and stakeholders. Furthermore, research on corporate governance and ethical activities to the society and community has yet to be adequately examined in Vietnam, while other developed or developing nations are enjoying quite a lot of research on the subjects (Lien & Holloway, 2014). Accordingly, it is extremely necessary to do some research on the management of earnings, socially responsible actions, and corporate governance in the context of Vietnam as a developing economy where there remains a lack of attention to these issues.…”