| dc.description.abstract | Generally, previous scholars have found out that both state ownership and level of debt impair firm performance of privatized companies in transition economies. However, the impacts of both state ownership and debt on performance have not been examined. For this reason, the study is conducted to explore the relationship between state ownership itself and firm performance as well as the interaction of state ownership and debt on firm performance.
Based on previous researches and the application of moderation methodology, two hypotheses are drawn which indicate state shares may be negatively correlated to firm performance and an increase in level of debt may strengthen this relationship. After examining the pooled data of 1106 privatized companies listed on Hanoi Stock Exchange (HNX) and Ho Chi Minh Stock Exchange (HOSE) from 2009 to
2011, the findings reveal that in contrast to an initial prediction, state ownership may not have detrimental impact on firm performance. In fact, it helps privatized companies improve performance through efficient control and preferentially administrative treatments. Besides, it is also discovered that the more financial leverage a privatized firm employs, the better effect state shares have on its performance. Accordingly, an increase in level of debt may be perceived to strengthen an association between state ownership and performance of a company. These results provide useful reference for further studies as well as contribute to revealing the “powerful hand” and efficient
management of Vietnamese state over operation of privatized firms in recent periods. | en_US |
