Ownership structure, capital structure and firm performance

Abstract

Only when the privatization of Vietnamese State-owned enterprises results

in appropriate forms of ownership structures and capital structure can these enterprises achieve superior performance. In the context of Vietnamese stock market, privatization should transform State-Owned firms into public companies with Dominant Outsider Ownership structures, in which Dominant Foreign Ownership structure is the most preference. Moreover, since the presence of Dominant Outsider Ownership or Dominant Foreign Ownership may not weaken the adverse impact of leverage on firm performance, a low level of debt would be superior in all cases.