| dc.description.abstract | The study explores the influence of capital structure and equity ownership
on the performance of publicly traded companies in Vietnam. By investigating these
important aspects within Vietnam's distinct institutional, regulatory, and cultural
environment, the research seeks to offer valuable insights and enhance the
comprehension of corporate finance dynamics in developing economies. The study
utilizes a comprehensive dataset of non-financial companies listed on the Ho Chi Minh
Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) between 2015 and 2022.
Using panel data regression models, the research examines the connection between
leverage, ownership structure (state ownership and foreign ownership), and firm
performance, as measured by Tobin's Q ratio. The results indicate that the effect of
capital structure on firm performance differs across sectors, with some industries
exhibiting a U-shaped or inverted U-shaped relationship, while others show a more
linear correlation. Furthermore, the study reveals a negative association between state
ownership and firm performance in the Construction and Materials industry,
emphasizing the potential difficulties linked to state-owned enterprises (SOEs). In
contrast, foreign ownership is discovered to have a positive effect on firm performance
across multiple industries, highlighting the potential advantages of foreign direct
investment (FDI) and knowledge spillovers. The study's findings have crucial
implications for managers, policymakers, and investors operating in the Vietnamese
market, providing guidance on optimal financing strategies, ownership composition,
and the potential risks and benefits related to different ownership structures. From a
theoretical standpoint, the research contributes to the ongoing discussion on the
applicability of traditional corporate finance theories in emerging markets and the role
of ownership composition in reducing agency costs. | en_US |
