Ownership And Firm PerformanceIn Vietnam

Abstract

This paper aims to investigate the relationship between ownership structure (state ownership and foreign ownership) and firm performance of Vietnamese listed firms on HOSE from the year of 2011 to 2015. This research was done by using generalized method of moments model (GMM) to analyze yearly data of 221 companies which were collected from audited financial statements. Particularly, the GMM model was applied between dependent variable firm performance measure by Tobin‟s Q and independent variables represented by foreign ownership, state ownership, liquidity, current ratio, and lag variable of firm performance to avoid endogeneity problems. Moreover, independent variables and tangibility, firm size, profitability was used as instrumental variables.