The impact of corporate governance on firm performance: Empirical research from listed companies in Vietnam stock market
Main Article Content
Abstract
This study examines the impact of corporate governance on the firm performance of companies listed in Vietnam’s stock market in the during the period 2008 – 2018. The author uses the GMM method with a data set of 479 companies including 5,269 observations. The research results show that a positive correlation between the CEO duality(CEOKN), Audit committee size (QMBKS) with firm performance and the negative relationship between Board independence (TVHDQTDL) with firm performance. The study tests the nonlinear relationship between the ownership concentrationand firm performance. The results find that there is no conclusive evidence of the nonlinear relationship between the ownership concentration and firm performance.
Article Details
Keywords
Corporate governance, firm performance, Vietnam stock market, GMM method.
References
Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31, 377-397.
Aldamen, H., Duncan, K., Kelly, S., McNamara, R., & Nagel, S. (2012). Audit committee characteristics and firm performance during the global financial crisis. Accounting & Finance, 52(4), 971-1000.
Amran, N. A. (2011). The Effect of Owner’S Gender And age To Firm Performance: A Review on Malaysian Public Listed Family Businesses. Journal of Global Business and Economics, 2(1), 104- 116.
Bhaumik, S. K., & Selarka, E. (2012). Does ownership concentration improve M& A outcomes in emerging markets? Evidence from India. Journal of corporate finance, 18(4), 717-726.
Caramanolis-Cotelli, B. (1995). External and internal corporate control mechanism and the role of. the board of directors: A review of the literature Working Paper No 9606. Institute of Banking and Financial Management.
Clark, T. (2004). Theories of Corporate Governance. The Philosophical Foundations of Corporate Governance. London and New York: Routledge.
Coles, J. L., Daniel, N.D., & Naveen, L. (2008). Boards: does one size fit all? Journal of Financial Economics, 87, 329-356.
Detthamrong, U., Chancharat, N., & Vithessonthi, C. (2017). Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42, 689-709.
Donaldson, L. & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management, 16(1), 49-65.
Fama, E., F. & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law and Economics, 15(2), 301-325.
Fairlie, R. W. & Robb, A. M. (2009). Gender differences in business performance: evidence from the Characteristics of Business Owners survey. Small Business Economics, 33(4), 375-395.
Gedajlovic, E., & Shapiro, D. (1998). Management and ownership effects: evidence from five countries.
Strategic Management Journal, 19(6), 533-553.
Glynn, J. J., & Murphy, M. P. (1996). Public management failing accountabilities and failing performance review. International Journal of Public Sector Management, 9(5-6), 125-137.
Green, C. P., & Homroy, S. (2018). Female directors, board committees and firm performance. European Economic Review, 102, 19-38.
Hassan, H., Hassan, S., Karim, N. A., & Salamuddin, N. (2014). Non Linearity between Ownership Concentration and Firm Value. In Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014), 978-981.
Haniffa, R., & Hudaib, M. (2006). Corporate governance structure and performance of Malaysian listed companies. Journal of Business Finance & Accounting, 33, 1034-1062.
Hoàng Trung Tiến. (2019). Tác động của hội đồng quản trị đến hiệu quả ngân hàng. Tạp chí Cơ quan thông tin của Bộ Tài chính.
Ho, S. S., Li, A. Y., Tam, K., & Zhang, F. (2015). CEO Gender, Ethical leadership, and Accounting Conservatism.
Journal of Business Ethics, 127(2), 351-370.
Hồ Thủy Tiên, & Hoàng Mạnh Khánh. (2020). Minh bạch thông tin và các yếu tố ảnh hưởng – bằng chứng thực nghiệm tại Việt Nam. Tạp chí Nghiên cứu Tài chính – Marketing, 56, 38-56.
Hsu, C. S., Kuo, L., & Chang, B. G. (2013). Gender Difference in Profit Performance – Evidence from the Owners of Small Public Accounting Practices in Taiwan. Asian Journal of Finance & Accounting, 5(1), 140-159.
Jackling, B., & Johl, S. (2009). Board Structure and Firm Performance: Evidence from India’s Top Companies. Corporate Governance: An International Review, 17, 492-509.
Jiang, H., Habib, A., & Smallman, C. (2009). The effect of ownership concentration on CEO compensation- firm performance relationship in New Zealand. Pacific Accounting Review, 2, 104-131.
Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33, 375-400
Liu, C., Uchida, K., & Yang, Y. (2012). Corporate governance and firm value during the global financial crisis: Evidence from China. International Review of Financial Analysis, 21, 70-80.
Maury, B. (2006). Family ownership and firm performance: empirical evidence from Western European corporations. Journal of Business Finance & Accounting, 12(2), 321-341.
Muniandy, B., & Hillier, J. (2015). Board independence, investment opportunity set and performance of South African firms. Pacific-Basin Finance Journal, 35, 108-124.
Miguel, A., Pindado, J., & Torre, L. (2004). Ownership structure and firm value: new evidence from the Spanish corporate governance system. Strategic Management Journal, 25(12), 1199-1207.
Nguyễn Hoàng Minh, & Nguyễn Thu Hiền. (2014). Trách nhiệm của hội đồng quản trị và hiệu quả doanh nghiệp trên thị trường chứng khoán Việt Nam. Tạp chí phát triển KH& CN, 17, Q1-2014.
Nguyễn, P. (2011). Corporate governance and risk-taking: evidence from Japanese firms. Pac.-Basin Finance J, 19, 278-297.
Ngô Nhật Phương Diễm, Phan Thị Huyền, & Trần Thị Nguyệt Nga. (2020). Các đặc điểm bên trong công ty tác động đến chất lượng thông tin báo cáo tài chính: Bằng chứng thực nghiệm tại Việt Nam. Tạp chí Nghiên cứu Tài chính – Marketing, 58, 27-39.
Phan Thị Huyền, Ngô Nhật Phương Diễm, Trần Thị Nguyệt Nga, Nguyễn Thị Anh Vân & Nguyễn Khắc Hiếu. (2020). Ảnh hưởng của đổi mới đến kết quả hoạt động trong lĩnh vực công nghiệp tại Tp.Hồ Chí Minh. Tạp chí Nghiên cứu Tài chính – Marketing, 56, 5-64.
Phan Bùi Gia Thủy, Trần Đức Tài & Trần Thị Tú Anh. (2017). Ảnh hưởng của đặc điểm tổng giám đốc điều hành đến hiệu quả hoạt động doanh nghiệp. Tạp chí Khoa học Đại học Mở Thành phố Hồ Chí Minh, 55(4).
Rose, C. (2007). Does female board representation influence firm performance?: The Danish evidence.
Corporate Governance: An International Review, 15, 404-413.
Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257-273.
Singh, H., & Harianto, F. (1989). Top Management Tenure, Corporate Ownership Structure and the Magnitude of Golden Parachutes. Strategic Management Journal, 10, 143-156.
Shleifer, A. & Vishny, R.W. (1997). A Survey of Corporate Governance. The Journal of Finance, 2, 737- 783.
Thủ tướng Chính phủ. (2017). Nghị định số 71/2017/NĐ-CP của Thủ tướng Chính phủ hướng dẫn về quản trị công ty áp dụng đối với công ty đại chúng, ban hành ngày 6/6/2017.
Wiwattanakantang, Y. (2001). Controlling shareholders and corporate value: evidence from Thailand. Pacific-Basin Finance Journal, 9, 323-362.
Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Accounting and Economics. 40(2), 185-211.
Aldamen, H., Duncan, K., Kelly, S., McNamara, R., & Nagel, S. (2012). Audit committee characteristics and firm performance during the global financial crisis. Accounting & Finance, 52(4), 971-1000.
Amran, N. A. (2011). The Effect of Owner’S Gender And age To Firm Performance: A Review on Malaysian Public Listed Family Businesses. Journal of Global Business and Economics, 2(1), 104- 116.
Bhaumik, S. K., & Selarka, E. (2012). Does ownership concentration improve M& A outcomes in emerging markets? Evidence from India. Journal of corporate finance, 18(4), 717-726.
Caramanolis-Cotelli, B. (1995). External and internal corporate control mechanism and the role of. the board of directors: A review of the literature Working Paper No 9606. Institute of Banking and Financial Management.
Clark, T. (2004). Theories of Corporate Governance. The Philosophical Foundations of Corporate Governance. London and New York: Routledge.
Coles, J. L., Daniel, N.D., & Naveen, L. (2008). Boards: does one size fit all? Journal of Financial Economics, 87, 329-356.
Detthamrong, U., Chancharat, N., & Vithessonthi, C. (2017). Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42, 689-709.
Donaldson, L. & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management, 16(1), 49-65.
Fama, E., F. & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law and Economics, 15(2), 301-325.
Fairlie, R. W. & Robb, A. M. (2009). Gender differences in business performance: evidence from the Characteristics of Business Owners survey. Small Business Economics, 33(4), 375-395.
Gedajlovic, E., & Shapiro, D. (1998). Management and ownership effects: evidence from five countries.
Strategic Management Journal, 19(6), 533-553.
Glynn, J. J., & Murphy, M. P. (1996). Public management failing accountabilities and failing performance review. International Journal of Public Sector Management, 9(5-6), 125-137.
Green, C. P., & Homroy, S. (2018). Female directors, board committees and firm performance. European Economic Review, 102, 19-38.
Hassan, H., Hassan, S., Karim, N. A., & Salamuddin, N. (2014). Non Linearity between Ownership Concentration and Firm Value. In Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014), 978-981.
Haniffa, R., & Hudaib, M. (2006). Corporate governance structure and performance of Malaysian listed companies. Journal of Business Finance & Accounting, 33, 1034-1062.
Hoàng Trung Tiến. (2019). Tác động của hội đồng quản trị đến hiệu quả ngân hàng. Tạp chí Cơ quan thông tin của Bộ Tài chính.
Ho, S. S., Li, A. Y., Tam, K., & Zhang, F. (2015). CEO Gender, Ethical leadership, and Accounting Conservatism.
Journal of Business Ethics, 127(2), 351-370.
Hồ Thủy Tiên, & Hoàng Mạnh Khánh. (2020). Minh bạch thông tin và các yếu tố ảnh hưởng – bằng chứng thực nghiệm tại Việt Nam. Tạp chí Nghiên cứu Tài chính – Marketing, 56, 38-56.
Hsu, C. S., Kuo, L., & Chang, B. G. (2013). Gender Difference in Profit Performance – Evidence from the Owners of Small Public Accounting Practices in Taiwan. Asian Journal of Finance & Accounting, 5(1), 140-159.
Jackling, B., & Johl, S. (2009). Board Structure and Firm Performance: Evidence from India’s Top Companies. Corporate Governance: An International Review, 17, 492-509.
Jiang, H., Habib, A., & Smallman, C. (2009). The effect of ownership concentration on CEO compensation- firm performance relationship in New Zealand. Pacific Accounting Review, 2, 104-131.
Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33, 375-400
Liu, C., Uchida, K., & Yang, Y. (2012). Corporate governance and firm value during the global financial crisis: Evidence from China. International Review of Financial Analysis, 21, 70-80.
Maury, B. (2006). Family ownership and firm performance: empirical evidence from Western European corporations. Journal of Business Finance & Accounting, 12(2), 321-341.
Muniandy, B., & Hillier, J. (2015). Board independence, investment opportunity set and performance of South African firms. Pacific-Basin Finance Journal, 35, 108-124.
Miguel, A., Pindado, J., & Torre, L. (2004). Ownership structure and firm value: new evidence from the Spanish corporate governance system. Strategic Management Journal, 25(12), 1199-1207.
Nguyễn Hoàng Minh, & Nguyễn Thu Hiền. (2014). Trách nhiệm của hội đồng quản trị và hiệu quả doanh nghiệp trên thị trường chứng khoán Việt Nam. Tạp chí phát triển KH& CN, 17, Q1-2014.
Nguyễn, P. (2011). Corporate governance and risk-taking: evidence from Japanese firms. Pac.-Basin Finance J, 19, 278-297.
Ngô Nhật Phương Diễm, Phan Thị Huyền, & Trần Thị Nguyệt Nga. (2020). Các đặc điểm bên trong công ty tác động đến chất lượng thông tin báo cáo tài chính: Bằng chứng thực nghiệm tại Việt Nam. Tạp chí Nghiên cứu Tài chính – Marketing, 58, 27-39.
Phan Thị Huyền, Ngô Nhật Phương Diễm, Trần Thị Nguyệt Nga, Nguyễn Thị Anh Vân & Nguyễn Khắc Hiếu. (2020). Ảnh hưởng của đổi mới đến kết quả hoạt động trong lĩnh vực công nghiệp tại Tp.Hồ Chí Minh. Tạp chí Nghiên cứu Tài chính – Marketing, 56, 5-64.
Phan Bùi Gia Thủy, Trần Đức Tài & Trần Thị Tú Anh. (2017). Ảnh hưởng của đặc điểm tổng giám đốc điều hành đến hiệu quả hoạt động doanh nghiệp. Tạp chí Khoa học Đại học Mở Thành phố Hồ Chí Minh, 55(4).
Rose, C. (2007). Does female board representation influence firm performance?: The Danish evidence.
Corporate Governance: An International Review, 15, 404-413.
Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257-273.
Singh, H., & Harianto, F. (1989). Top Management Tenure, Corporate Ownership Structure and the Magnitude of Golden Parachutes. Strategic Management Journal, 10, 143-156.
Shleifer, A. & Vishny, R.W. (1997). A Survey of Corporate Governance. The Journal of Finance, 2, 737- 783.
Thủ tướng Chính phủ. (2017). Nghị định số 71/2017/NĐ-CP của Thủ tướng Chính phủ hướng dẫn về quản trị công ty áp dụng đối với công ty đại chúng, ban hành ngày 6/6/2017.
Wiwattanakantang, Y. (2001). Controlling shareholders and corporate value: evidence from Thailand. Pacific-Basin Finance Journal, 9, 323-362.
Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Accounting and Economics. 40(2), 185-211.
Most read articles by the same author(s)
- Nguyen Van Thuan, Nguyen Thi Kim Chi, Tran Xuan Hang, Nguyen Minh Hang, The impact of tax competition on foreign direct investment in ASEAN countries , Journal of Finance and Marketing: No. 61 (2021)