Impacts of Ownership Structure on Firm Profitability among Listed Firms in Vietnamese Securities Exchange

Abstract

The paper studies relationships between: ownership structure and leverage and profitability of firms using data of all listed firms in the two exchanges in Vietnam. The empirical findings show negative relationships between state ownership and firm profitability and positive relationships between foreign ownership and firm profitability. In addition, the relationships of leverages with ownerships resulted logically with firm profitability when leverages are considered as a tool of financial management. Particularly, leverage is high in high state ownership firms, and the high leverage firms have low profitability. The findings are in an inverse way with regard to foreign ownership. The paper contributes more empirical evidence to the policies which potentially enhance low state ownership and high foreign ownership in Vietnamese firms.

Keywords

Ownership structure, firm profitability, leverage, listed firms

References

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