Corporate governance and the relationship between firm performance and firm value - A case of listed firms in Vietnam
Abstract
This study examines the impact of corporate governance on firm performance
(accounting returns). In addition, the study distinguishes itself from current literature by
exploring the moderating effect of corporate governance on the association between firm
performance and firm value. Generally, secondary data of financial variables from
reliable public information of firms listed on Vietnam stock market has been collected
and their corporate governance performance has been evaluated following Garay and
González (2008).
We find that corporate governance in general is positively related to firm
performance. The valuable findings wake up perception of both investors and listed
companies about the importance of good corporate governance to the sustainable
business development. The findings also reveal a moderating impact of corporate
governance on the association between firm performance and firm value for one year
(2013) of the study in which corporate governance performance is found to strengthen the
positive association between firm performance and firm value. From our result analysis,
implications for investors and firms and the market development in general have been
suggested.
Key words: corporate governance, firm performance, firm value, moderating effect,
Vietnam stock market