The Impact of Ownership Structure and Capital Structure on Financial Performance of Vietnamese Firms

Do Xuan Quang, Wu Zhong Xin

Abstract


This article studies the impact of ownership structure and capital structure on firms’ financial performance in context of an emerging transitional economy. According to research findings, capital structure has a negative impact with statistical significance on financial performance (measured by ROA, ROE). The higher level of state ownership in ownership structure of a firm is, the better financial performance it has. While clear evidences with statistical significance of the impact of managerial ownership on financial performance have not been found, this study found out that, the level of entrenchment of managers in state-owned enterprises (SOEs) is higher than that of businesses of other types.


Full Text: PDF DOI: 10.5539/ibr.v7n2p64

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.