Ownership structure and corporate diversification decision: a study of Vietnamese listed firms

Phung, Duc Nam; Phan, Thi Bich Nguyet; Nguyen, Thi Lien Hoa; Le, Thi Phuong Vy

doi:10.22495/cocv13i3c1p9

Cited by 8 publications

(45 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Also, the study accepts the null hypothesis, which states that "there is no significant effect of foreign ownership on the earnings management practices of Jordanian industrial companies", this finding agrees with Khamis et al (2015) who show that foreign ownership doesn't limit the earnings management practices for the distance and insufficient accounting disclosures of the company. And it also disagrees with the study of Alwshah (2009) and Phung (2015) who show that foreign ownership limits the earnings management by effectively developing corporate governance role. Table 3 shows that the debt and the size of the company measured by the natural logarithm of the total assets positively affect the earnings management of the Jordanian industrial companies listed on the Amman Stock Exchange, where the significant values were 0.000 and 0.006, respectively.…”

Section: %mentioning

confidence: 64%

“…Alwshah (2009) finds that the presence of foreign ownership in the shares of companies often leads to improved company's performance, due to the improvement of the control and supervision of the company's management, so that the foreign ownership strengthens the local companies with foreign shareholders who are working to develop and enhance the means of corporate governance effec-tively, for example, by becoming members of the board of directors, as well as merging the emerging markets in the developing countries with the global economy markets. Phung (2015) states that the presence of foreign ownership in the company may lead to transfer of modern technology and management skills, in addition to supervisory roles exercised by foreign owners, will reduce the agency's problems in the company. Also, foreign owners are interested in disclosure and perform best accounting practices, in turn, improving the quality of financial reports.…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

The effect of the ownership structure on earnings management practices

Maswadeh

2018

Investment Management and Financial Innovations

View full text Add to dashboard Cite

The objective of this study is to investigate the effect of the ownership structure, which includes concentration ownership, institutional ownership and foreign ownership in the light of the debt ratio and company size as controlling variables in limiting the earnings management practices of the Jordanian industrial companies for the period 2012–2016. The hypotheses of the study were tested using the multiple regression models. Among the most prominent findings of the study are: the explanatory factor (R2) for the independent and control variables accounts for 38% of the change in the earnings management of the Jordanian industrial companies, moreover, a significant effect of the concentration ownership was found in the limitation of earnings management practices; while, there was no significant influence of institutional ownership and foreign ownership on the earnings management practices in Jordanian industrial companies. Major limitation to this study is the only considered listed industrial Jordanian firms. Thus, the generalization of the results to other sectors and diverse economic conditions and regulations may be constrained. Finally, Jordanian policymaker reform policies motivate companies to increase their interest on concentration ownership structure, as the study showed the significant effect of the concentration ownership in the limitation of earnings management practice.

show abstract

Section: %mentioning

confidence: 64%

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

The effect of the ownership structure on earnings management practices

Maswadeh

2018

Investment Management and Financial Innovations

View full text Add to dashboard Cite

show abstract

“…(C.-J. Chen & Yu, 2012) and (Phung, 2015) examined ownership structure, corporate diversification, and firm performance jointly. Notwithstanding this, corporate diversification was still defined as an independent variable.…”

Section: Mediating Role Of Corporate Diversificationmentioning

confidence: 99%

“…From previous studies, institutional ownership positively affects corporate diversification (Gharbi & Jarboui, 2017). On the other hand, foreign ownership negatively impacts corporate diversification decisions (Phung, Phan, Nguyen, & Le, 2016). In regards to the relationship between corporate diversification and performance, mixed results have been reported in most countries.…”

Section: Introductionmentioning

confidence: 96%

Ownership Structure and Financial Performance of Listed Firms in Kenya: Mediation Role of Corporate Diversification

Tanui

Katana

Alosi

et al. 2021

JAREAS

View full text Add to dashboard Cite

Purpose: The study aimed at examining the mediating role of corporate diversification between ownership structure and financial performance of listed firms in Kenya. Methodology/Approach/Design: As guided by explanatory research design, 65 listed firms from 2003 to 2017 were targeted. However, panel data of 35 firms were considered after excluding suspended and delisted as far as the study period is concerned. Results: The panel regression analysis finding indicated that corporate diversification positively and significantly mediated between institutional ownership and financial performance (β = .005, p-value = .000). Furthermore, there was a negative but statistically significant mediation effect of corporate diversification between foreign ownership and financial performance (β = -.0019, p-value = .023). These mediation effects existed despite the direct effect between institutional and as well foreign ownership and financial performance being statistically insignificant. Practical Implications: The study, therefore, suggested to the management of listed firms to ensure proper implementation of corporate diversification as it transmits the effect of ownership structure on financial performance. More importantly, policymakers are suggested to streamline taxation of foreign investors, tackle malpractices in the firm leading to embezzlement of investor funds. Future studies need to enlarge the scope to incorporate unlisted firms as well as firms listed in different stock exchanges in East Africa. Other types of ownership structure as managerial, family and state need to be analyzed. In addition, other forms and measures of corporate diversification could be investigated by future researchers. Originality/Value: To attain the main objective, the study used panel regression analysis and path diagrams to examine the effect of ownership structure on financial performance via corporate diversification.

show abstract

“…In the process, foreign investors not only influence decisions but also provide access to resources (Ongore, 2011) such as assets (Kimura & Kiyota, 2007), equity capital (Gurunlu & Gursoy, 2010) and external financing (Koo & Maeng, 2006). In Vietnam, (Phung, Phan, Nguyen, & Le, 2016) examined the effect of foreign ownership on corporate diversification.…”

Section: Introductionmentioning

confidence: 99%

Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya

Tanui

Yegon

Bonuke

2019

SJOM

View full text Add to dashboard Cite

Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017. Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification. Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels. Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage.

show abstract

Ownership structure and corporate diversification decision: a study of Vietnamese listed firms

Cited by 8 publications

References 50 publications

The effect of the ownership structure on earnings management practices

The effect of the ownership structure on earnings management practices

Ownership Structure and Financial Performance of Listed Firms in Kenya: Mediation Role of Corporate Diversification

Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya

Contact Info

Product

Resources

About