IMPACT OF MANAGERIAL OWNERSHIP STRUCTURE ON PERFORMANCE OF LISTED COMPANIES IN VIETNAM

Abstract

Purpose - This paper studies the impact of managerial ownership structure (MO) on firm performance (ROE) in Vietnam Stock Exchange market, an emerging market. We expected to find out the relationship between managerial ownership and firm performance. Design/methodology/approach – Our analysis uses Ordinary Least Squares (OLS) regression model with panel data from information of 104 Vietnamese firms listed on Ho Chi Minh Stock Exchange (HOSE) from 2011 to 2015. The study finds out the non – linear relationship between managerial ownership and firm performance. Findings – Our findings that managerial ownership structure changes unclear over 5 years and almost of them is dispersed ownership. Besides, U – shaped relationship shows negative relation for firm performance when managerial ownership less than 29.91%. However, when managerial ownership more than 29.91%, firm performance is positive with managerial ownership. Research limitations – In this research, we have some objective problems which lead to the number of selected companies is quite few. Many firms did not meet the research criteria due to insufficient or inexplicit data were excluded. Moreover, the range of time is not too large. Although the model is still significant, but it would be better if the data could be broaden. In addition, this paper only mentions one aspect of managerial ownership structure without mentioning other aspects.