Foreign ownership and firm performance - A study in Ho Chi Minh Stock exchange
Abstract
Study on the relationship between foreign ownership and firm performance which is represented by Tobin Q and ROA with evidence from Ho Chi Minh City Stock Exchange (HOSE) for the period 2011-2015. The author uses quantitative methods such as Pooled OLS, fixed-effects model (FE), random effects model and Robustness interfere. In addition, the research used First-difference form and Arellano and Bond (1991) GMM regression methods for dealing with endogenous problems and model defects. The result illustrate that the relationship between foreign ownership and firm performance is positive. This shows that foreign ownership is gradually being focused and effective in the Vietnamese market. In addition, the study examines several factors that affect firm performance as follows: a positive statistically significant effect of firm size and capital expenditure on firm performance, a negative the impact of leverage and state on firm performance, but result of the impact of state ownership on firm performance is not statistically significant.
Keywords: Foreign ownership, firm performance, Ho Chi Minh stock exchange.