Ownership structure and performance of professional service firms in a declining industry: Evidence from Vietnamese securities firms
Journal Title: Business and Economic Horizons - Year 2017, Vol 13, Issue 2
Abstract
This study posits that the declining industry is a good institutional environment to examine the relationship between ownership structure and firm performance of Vietnamese securities firms. This downturn decreases the return on investment of the industry and creates incentives for managers to expropriate shareholders more severely. In addition, different groups of shareholders recognizing the status of the industry may have their own reactions which are likely to affect firm performance. Using pooled OLS regression with a sample of 240 observations from 56 Vietnamese securities firms over the period from 2009 to 2016, we find supporting evidence of convergence-of-interest with a significantly negative relationship between insider ownership and profitability. In addition, foreign ownership is also positively related to firm performance. Firm size affects positively firm performance while number of employees has a negative impact on profitability.
Authors and Affiliations
Tien Hoang Nguyen, Xuan Minh Nguyen, Thi Thu Ha Nguyen, Quoc Trung Tran
Keywords
Related Articles
- EP ID EP448186
- DOI 10.15208/beh.2017.11
- Views 78
- Downloads 0
Determinants of Chinese demand for tourism in Malaysia
Tourism sector in Malaysia has always been one of its focal service industries not only in the past, but in the future as well in which Malaysian government has been focusing on diverting its economic activities from a r...
Applying Benford's law into Jordanian insurance companies to identify earning's manipulations
This study applies Benford’s law to examine the manipulations in revenue and earnings of a 25 insurance companies listed in Amman stock exchange from 2010 to 2015. These companies have been divided into two groups: (i) c...
A discussion of joint bank and industry concentration
This article examines bank and industry concentration jointly within the static framework of Cournot competition. The general equilibrium is one in which banks form a multiplant monopoly and firm profit is zero. This is...
Differences on self-perception of organizational pride and loyalty in Millennial & Generation X, considering gender and seniority variables
The research objective is to compare the differences in self-perception of organizational pride and loyalty between millennials and generation x, considering the variables of gender and seniority. The reason for this stu...
Solving global problems: Waste to power while creating stakeholder shared value
In 2015, an estimated 1.2 billion people, or 16% of the global population, did not have access to electricity. At the same time, solid waste generation rates have risen fast, reaching 30 million tons in 1980, 200 million...