Corporate governance: The impact of disclosure and transparency on performance of listed companies in Vietnam
Abstract
The research aims to investigate the impact of corporate transparency and disclosure
on firm performances including both accounting-based and market-based performance
measurements of Vietnamese listed companies. This paper employs the transparency and
disclosure score criteria built by Standard and Poor (S&P:T&D) as the transparency measure of
firm level and hypothesizes that corporate transparency has a positive relationship with the
company’s performance. The study is purely quantitative with the sample consists of 79 listed
companies cover in all industry on Ho Chi Minh stock exchange in Vietnam. The panel data
regression models will be applied to test the research hypotheses, with the three control variables
including firm size, financial leverage, firm age. The hypotheses will be tested separately in four
years from 2008 to 2009 and from 2012 to 2013 in order to study the impact of transparency on
firm performance.
Under the lights of the research, it is concluded that corporate transparency and
market based firm performance has a positively significant relationship. However, there is no
positive significant relation found between the level of transparency and return on asset and
return on equity. The research also indicates that the transparency level of listed firms on HOSE
is quite low with the mean lower than 50% of standard quality. Some recommendations are also
written down for further consideration to improve information disclosure of listed companies in
the future