Foreign Ownership and Firm Performance - Evidence in Vietnam

Xuan, Vinh Vo

doi:10.24311/jabes/2014.221.08

Cited by 3 publications

(3 citation statements)

References 35 publications

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“…Second, foreign ownership positively affects firm performance. This result is supported by previous research conducted in Vietnam (Vinh, 2014) and other countries (Chari et al, 2012; Gurbuz & Aybars, 2010; Kao et al, 2019). However, our study did not observe this relationship in qualitative research results from experts or the correlation coefficient between the two variables.…”

Section: Discussionsupporting

confidence: 88%

Foreign ownership and product market competition's influence on firm performance: Mediating role of the corporate governance index

Tran,

Ha,

2024

Bus Strat Dev

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This study examines the influence of foreign ownership and product market competition on firm performance in Vietnam's listed companies through the mediating role of the corporate governance index. Moreover, the study explores the moderating role of business strategy in the relationships between foreign ownership, product market competition, and firm performance. We use maximum likelihood structural equation modeling in Stata 14 software to analyze the data collected from 180 Vietnamese listed companies from 2015 to 2019. The results indicate that foreign ownership and product market competition positively influence firm performance by mediating the corporate governance index. Business strategy negatively moderates the relationship between product market competition and firm performance. This study has implications for managers focusing on foreign ownership and product market competition to improve corporate governance systems, enhancing firm performance. Additionally, managers may build business strategies when product market competition increases to avoid negative effects on firm performance.

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Section: Discussionsupporting

confidence: 88%

Foreign ownership and product market competition's influence on firm performance: Mediating role of the corporate governance index

Tran,

Ha,

2024

Bus Strat Dev

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“…Foreign ownership enables technological innovation, efficiency, or business risk-reduction [5], access to resources, capital markets, and management expertise [4]. However, different results are shown by Vinh's research [6] which proves that Vietnamese public companies owned by foreigners above 20% have a negative effect on company performance. The reason is that the more shares foreign owners have, the more they want to be involved in the company's operations.…”

Section: Introductionmentioning

confidence: 99%

“…For example, host companies expect to increase their exports when they receive foreign investment. Meanwhile, foreigners want to penetrate and expand the domestic market [6]. Different results are proven by [8] in Jordanian companies that foreign ownership has no positive or negative effect on the company's financial performance so that it will be difficult to realize GCG in Jordanian public companies.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Foreign Ownership on the Financial Performance of Manufacturing Companies

Setiawan,

Kurniawati

2023

ijaeb

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This increase in competition forces companies to always make technological improvements and improvements in corporate governance so that there is harmony between the interests of managers, investor, and other stakeholders. The impact of foreign ownership in Indonesian companies as a form of GCG could increase the company's financial performance. This study aims to prove empirically how foreign ownership can affect the financial performance of a public manufacturing company. The financial report data used as the research sample is in the form of secondary data for companies listed on IDX from 2017-2020. This research was assisted by the software program EViews 10. The test results are that foreign ownership by both companies and foreign individuals/citizens has no positive effect on the financial performance of manufacturing companies listed on the IDX.

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Foreign Investor Trading and Stock Market Stability: Evidence from VN30

Nhung

Anh²,

Thanh

2023

VNU-JEB

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This paper aims to investigate the extent to which foreign investors’ net trading value impacts on the stability of the Vietnamese stock market. By using the vector error correction model (VECM) approach, and a time series of 30 stocks listed on the VN30 which are collected from Fiinpro over the period from February 2012 to September 2022, the research provides evidence of the positive impact of foreigners’ net trading value on the stability of the Vietnamese stock market, with a positive impact on stock market liquidity and a negative influence on stock market volatility in the short-term. However, there is no evidence of a long-term relationship between foreigners’ net trading value and the volatility or liquidity of the Vietnamese stock market. In addition, the research proposes several implications for policy makers which could enable them to make appropriate adjustments to regulations on foreign investor trading, in order to ensure the stability of the Vietnamese stock market in the future, as well as for both individual and institutional investors who can use foreign investor trading as a sign of the stock market stability to make decisions.

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Foreign Ownership and Firm Performance - Evidence in Vietnam

Cited by 3 publications

References 35 publications

Foreign ownership and product market competition's influence on firm performance: Mediating role of the corporate governance index

Foreign ownership and product market competition's influence on firm performance: Mediating role of the corporate governance index

The Effect of Foreign Ownership on the Financial Performance of Manufacturing Companies

Foreign Investor Trading and Stock Market Stability: Evidence from VN30

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