State ownership and corporate risk‐taking: Empirical evidence in Vietnam

Ho, Tuan Quoc; Phung, Duc Nam; Nguyen, Yen Ngoc

doi:10.1111/1467-8454.12214

Cited by 15 publications

(8 citation statements)

References 41 publications

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“…Similar result was also concluded by Đặng et al (2021) that foreign investors are more active in the supervision of the business so that companies are more innovative which ultimately has an impact on increasing corporate risk‐taking. Ho et al (2021) through additional testing confirm the role of foreign ownership in moderating the relationship between state ownership and corporate risk‐taking. (Sakawa et al, 2021) also verified the same result that foreign institutional ownership drives risk‐taking by managers in Japanese firms.…”

Section: Hypothesis Developmentmentioning

confidence: 91%

Corporate waste disclosure, risk‐taking and foreign ownership: Evidence from Indonesia

Wulansari

Adhariani

2023

Bus Strat Dev

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The role of corporations in waste management can reflect the superior performance in innovation and the risk a company is willing to take to engage in the circular economy. The superior performance of corporate waste management can be reflected in the corporate disclosure as a media of accountability and transparency. This research investigates the association between waste disclosure and corporate risk-taking and the moderating role of foreign ownership in companies in Indonesia as an emerging country struggling to find an effective solution toward environmental problems, including waste. The observation was performed on non-financial companies listed on the Indonesian Stock Exchange for the period 2018-2021. Panel regression was used to find the answers to the research questions of the direct and moderate associations among corporate waste disclosure, risk-taking and foreign ownership. The results show that waste disclosure encourages increased corporate risk-taking, which means that companies that disclose waste are companies with good accountability and environmental performance and tend to take risks that can increase value. Foreign ownership was not found to statistically strengthen the relationship between waste disclosure and corporate risk-taking, which is different from the expectation that improving the transparency of waste information can attract a greater inflow of foreign investor resources. This brings implication that investors need to increase attention to the issue of corporate waste management and put pressure on companies to provide information on corporate waste performance for investment decision-making. Furthermore, the results of the study also found that waste disclosure in Indonesia is still low compared to the international disclosure standard. This research contributes to the sustainability accounting literature in developing countries by outlining the role of waste disclosure.

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Section: Hypothesis Developmentmentioning

confidence: 91%

Corporate waste disclosure, risk‐taking and foreign ownership: Evidence from Indonesia

Wulansari

Adhariani

2023

Bus Strat Dev

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“…Some prior research on the Chinese market (Liu et al, 2018; Yu, 2013) found a correlation between firm value and state ownership. Recent research in Vietnam has focused on the role of state ownership in transitional economies risk (Vo, 2018); cash holdings (Nguyen & Wong, 2021; Thi et al, 2021); risk‐taking behavior (Nguyen et al, 2020); firm performance (Kubo & Phan, 2019); and corporate risk‐taking (Ho et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

The moderating role of state ownership in between product market competition and firm value: findings from GMM and fsQCA

Thu

Minh

2022

Bus Strat Dev

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The study explores the link between product market competition (PMC) and firm value (FV) and examines the moderating role of the state ownership (SOE) variable in this relationship by using data from 555 listed firms on Vietnam's stock market from 2011 to 2019 on the Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX). The System Generalized Method of Moments (SysGMM) is used to consider the relationship between variables. The findings from SysGMM indicate that product market competition has an effect on firm value. Firms with a high proportion of state ownership have a stronger correlation between product market competition and firm value than firms with a low proportion of state ownership. Additionally, we use fuzzy-set qualitative comparative analysis (fsQCA) to consider the causal relationship of variables in the model. The fsQCA results show that FV increased when the combination of lower product market competition, higher state ownership, higher firm, and lower debt ratio, which is a common trend to help clarify the evidence in emerging markets. The research is significant for investors, listed companies, and particularly organizations with state ownership, since it enables them to develop specific strategies for enhancing corporate value as the competitive market grows more challenging. Simultaneously, the study concentrated on examining the causal relationships between the variables while utilizing the FSQCA approach in order to contribute to the literature review in the emerging market.

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“…State‐owned firms are encouraged by policies to cross‐list on the HK market; hence, most of the A‐H cross‐listed firms have state ownership. On the one hand, state‐owned firms typically do not have innovation incentives due to their monopoly positions (Ayyagari, Demirgüç‐Kunt, & Maksimovic, 2011; Ho, Phung, & Nguyen, 2020); on the other hand, state‐owned firms have financing advantages that facilitate innovation investments. Hence, we control with the state‐owned dummy variable (State‐owned firm).…”

Section: Resultsmentioning

confidence: 99%

Cross‐listing on the Hong Kong Exchange and Chinese firm innovation: New evidence

Xiang

2021

Australian Economic Papers

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It has been well documented that cross‐listing can improve firms' governance quality and reduce equity financing costs, which are crucial for firms' innovation activities. In this paper, we investigate the effect of cross‐listing on the Hong Kong (HK) market on the innovation performance of Chinese mainland firms. We find that both innovation outputs and qualities increase significantly when Chinese mainland firms list their shares on the HK market. Concerning the channels through which cross‐listing encourages innovation, we demonstrate that cross‐listed firms can raise low‐cost funds in the HK market, which facilitates their innovation activities. Moreover, the HK market generates more informative stock prices, which mitigate innovation information asymmetry and also encourage firms' innovation. In general, our paper sheds light on a new factor (cross‐listing) that motivates firms to engage in innovation and highlights cross‐listing's function in improving innovation.

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State ownership and corporate risk‐taking: Empirical evidence in Vietnam

Cited by 15 publications

References 41 publications

Corporate waste disclosure, risk‐taking and foreign ownership: Evidence from Indonesia

Corporate waste disclosure, risk‐taking and foreign ownership: Evidence from Indonesia

The moderating role of state ownership in between product market competition and firm value: findings from GMM and fsQCA

Cross‐listing on the Hong Kong Exchange and Chinese firm innovation: New evidence

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