HOW DOES OWNERSHIP AFFECT ON FIRM PERFORMANCE EMPERICAL EVIDENCE FROM VIETNAMESE STOCK MARKET

Maximizing firm performance and benefits has long been one of the biggest concerns for both shareholders and company management all over the world since it represents the change-in-value of investment and the ability of firm in generating income. After the transformation from the central planned economy to decentralized market economic in 1986, the state ownership sector in Vietnam start to privatize, resulting a miracle period of developing in 90s. And, after 30 years of the transformation, this research aims to analyze the impact of state own enterprise in nowadays word. Moreover, to a young and developing economy as Vietnam, the relationship between management structure and firm performance yet has not been discussed widely among the community of researchers. Overall, this study aims to identify the effects of ownership structure in nowadays world and identify whether ownership structure have the effects on the performance of companies listed in Vietnamese stock market. Firm performance is measured by Tobins Q Indicator, and the ownership structure are presented in term of managerial ownership, block ownership and state ownership. The empirical results afterwards indicate a cubic relationship between the managerial ownership and the firm performance, and a U-shape relationship between the block ownership and firm performance. On the other hand, the state ownership does not have significant impact to the firm performance, indicating that the privatization could be an efficient way to improve the performance of the company.