The Relationship Between Corporate Governance And Fiancial Performance In Vietnamese Risks

Abstract

This study aimed at exploring the correlation between governance mechanisms and the financial performance of listed companies in Vietnam during the period 2019-2022. Conducted on a data sample comprising 200 companies, the study employed multivariate regression analysis, with operational indicators such as ROA, ROE, and Tobin’s Q considered as dependent variables; while governance indicators related to shareholder rights, stakeholder involvement, and transparency were viewed as independent variables. Control variables such as size, leverage, and age were also considered. The results revealed a positive and significant relationship between the protection of shareholder rights, orientation for stakeholders, and transparency practices with financial performance. Specifically, the enhancement of shareholder power, representation, and disclosure had the strongest impact on profitability, return, and superior valuation. The control variables also functioned as expected. These findings affirm that upgrading governance standards can optimize financial outcomes for listed enterprises in Vietnam. As reforms continue to unfold, focusing on promoting the independence of the board of directors, accountability, fair control rights, and transparent operations can help improve operational efficiency. This analysis provides timely evidence to guide policymakers and businesses in Vietnam towards adjusting the governance framework in line with global standards to create sustainable value. Further research on more organizational forms could provide deeper insights.