| dc.description.abstract | The purpose of this study is to research how Corporate Governance practice could affect the financial performance of listed companies on Hochiminh Stock Exchange. This study attempts to build a Corporate Governance Index (CGI) as
an necessary indicator to evaluate corporation.
The Literature review was conducted to provide the theoretical framework for the research model in this study. IFC’s scorecard, which is based on OECD Principles of Corporate Governance accepted worldwide, was chosen. After the pilot test of 10 companies, an compact version of IFC’s scorecard was made to collect primary data. The new scorecard is reasonable to be conducted based on available information on the internet, instead of making deeper investigation as IFC did.
After collecting and analyzing 100 scorecards with SPSS software, the results have shown that CGI has positive impact on both ROA and ROE. However, the research could not make the same conclusion for all components of CGI. There is evidence that only Ensuring Rights of Shareholders has positive relatio n to ROA, while similar impacts are found from Ensuring Rights of Shareholders, Role of Stakeholders and Responsibilities of Boards to the level of ROE.
Although the impacts of several CGI’s components on ROA and ROE could not be proved, they keep contributing a portion in the general Corporate Governance Index, thus should not be missed. Despit limitations of the study, it is hoped to contribute implication for companies to build their own a good and healthy corporate governance system, to create encouragement of making companies in Vietnam more
transparent in their activities and protect investors from information asymmetric. | en_US |
