The effects of pre-privatization managers on the relationship between state ownership and firm performance

Abstract

This thesis is to test the effect of pre-privatization managers on the association between state ownership and firm performance of listed firms in Vietnam’s stock exchange during the three years period 2009, 2010 and 2011. Almost against the conventional wisdom on the impact of state ownership, state ownership is found to be positively related to firm performance (ROA and ROE). Moreover, this paper clarifies that the continuance of retaining pre-privatization top management will strengthen the positive relationship between state ownership and firm performance. Although the empirical findings fail to support both hypotheses, the rationale of a moderating impact of the continuing pre- privatization management on the association between state ownership and firm performance has been validated. Results therefore provide many useful implications to government policies, enterprise’s strategies, investor as well as future research.