Investments in subsidiaries, joint ventures, affiliates and firm growth: Evidence from Vietnam

Pham, Hung Le; Kalyebara, Baliira

doi:10.5267/j.ac.2020.5.006

Cited by 3 publications

(3 citation statements)

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“…Djankov & Murrell, 2002;Megginson, Nash, & Randenborgh, 2012). It also supports the finding that investments by government-controlled firms do not have any significant impacts on firm growth in Vietnam (Pham & Kalyebara, 2020).…”

Section: Dependent Variablesupporting

confidence: 78%

“…Different owners of a firm have different levels of power, incentives and ability to monitor managers (Douma, George, & Kabir, 2006). Since foreign shareholders may help strengthen the monitoring role of shareholders of firms in Vietnam (Pham & Kalyebara, 2020), it is expected that foreign ownership has a negative impact on agency costs.…”

Section: Control Variablesmentioning

confidence: 99%

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Minority investor protection mechanisms and agency costs: An empirical study using a World Bank–developed approach

Pham¹,

Nguyen²

2022

10.5267/j.ac

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This study aims to examine the impact of minority investor protection mechanisms on agency costs. All relevant indicators of minority investor protection adapted from the World Bank’s annual ‘Doing Business’ reports, along with concentrated government ownership, are employed with a panel data sample of 135 Vietnamese listed firms during the period 2014–2018. It is found that the following mechanisms are effective in mitigating agency costs and hence agency problems at the firm level: 1) review and approval requirements for related-party transactions; 2) minority shareholders’ ability to sue and hold directors liable for their duties; 3) minority shareholders’ access to internal corporate documents; 4) investors’ rights to approve major corporate investment and sale of asset decisions; and 5) disclosure in annual reports of salaries, bonuses and other forms of remuneration to directors and management. Interestingly, board independence and controlling government shareholders are not confirmed to play significant roles in addressing agency problems. To the best of the authors’ knowledge, this is the first attempt at testing for the impact of minority investor protection mechanisms developed by the World Bank on agency costs at the firm level, hence providing empirical evidence for the adoption of the minority investor protection mechanisms promoted by the World Bank. This study also provides policy implications for selecting effective mechanisms to mitigate agency conflicts between controlling shareholders and minority investors in order to enhance the financial performance of firms in an Asian emerging market.

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Section: Dependent Variablesupporting

confidence: 78%

Section: Control Variablesmentioning

confidence: 99%

Minority investor protection mechanisms and agency costs: An empirical study using a World Bank–developed approach

Pham¹,

Nguyen²

2022

10.5267/j.ac

Self Cite

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“…Esaku (2020) has also reported positive impact of firm level investment on firm growth. Investment has a significant positive impact on the firm growth (Pham, 2020). Moore, Broome and Robinson (2009) have documented the positive impact of cash on firm growth.…”

Section: Determinants Of Firm Growthmentioning

confidence: 99%

Impact of Volatility on Firm Sales Growth Some Insights from Pakistan

Rauf¹,

Rashid²

2021

BER

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This paper empirically investigates how firm level, industrial level, market level and macroeconomic volatilities influencePakistani non-financial firms’ sales growth. It also examines how interactions between different kinds of volatilities affect sales growth. The empirical analysis is carried out using unbalanced annual panel data set covering the period 1988-2017.The results indicate that although all types of volatilities assert negative impacts, the intensity of the impact is quite different across different volatilities. Macroeconomic volatility has the highest adverse impact followed by firm volatility. Unexpectedly, the results provide evidence that one type of volatility significantly reduces the adverse impact of other type of volatility. These findings imply that firms may design and implement more effective sales growth strategies in periods when they face more than on type of volatility.

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