The impact of corporate governance on firm performance in VietNam - A study on Ho Chi Minh Stock exchange
Abstract
This paper investigates the influence of corporate governance on firm performance using publicly listed firms on Ho Chi Minh Stock Exchange (HOSE). 100 firms are taken into account with their annual reports from 2011 to 2015.
It is found out that corporate governance produces power effect on firm performance. To be specific, the negative correlation happens when it comes to the association between CEO duality as well as board size with firm performance. This explains for the poor performance of firms in Vietnam. Almost Vietnamese firms haven’t separated the role of ownership and the role of management and acquired any basic knowledge regarding corporate governance concept. By contrast, this paper presents a positive association between ownership concentration and firm performance.