The Determinants of the Fundraising Structure of Listed Companies in Vietnam : Estimation of the Effects of Government Ownership

This study investigates the factors determining the debt-ratios of listed companies on the Hanoi and Ho Chi Minh stock exchange markets. Estimation analysis using panel data covering the three-year period from 2006 to 2008 reveals the following results. (1) The debt-ratios of listed companies may be well explained by adjusted Modigliani and Miller theory combined with agency cost theory. (2) In order to borrow long-term outside funds, the ability to provide collateral is very important, even for qualified and listed companies. (3) Government controlled companies have weak incentives to save corporate tax payments by using debt financing. (4) In term of long-term fundraising, government controlled companies are perceived to present less risk than other companies. (5) In the determinants of fundraising, there is almost no difference in the determinants of fundraising between companies listed on the Ho Chi Minh stock exchange and those on the Hanoi stock exchange. (6) Compared to the fundraising activities of small- and medium-sized companies analyzed by Nguyen (2006) and Biger et al. (2008), those of listed companies could be better explained by using standard corporate financing theory. These observations suggest several policy implications. (1) Economic reform (Doi Moi) policies have successfully built up market based corporate financing systems for listed companies in Vietnam; however, (2) the protection of outside creditors should be further enhanced, as should be the disclosure of corporate information. (3) Further liberalization and privatization of the banking sector is urgently needed.Corporate Finance, Capital Structure, Transition Economy, Vietnam

The Determinants of the Fundraising Structure of Listed Companies in Vietnam: Estimation of the Effects of Government Ownership

This study investigates the factors determining the debt-ratios of listed companies on the Hanoi and Ho Chi Minh stock exchange markets. Estimation analysis using panel data covering the three-year period from 2006 to 2008 reveals the following results. (1) The debt-ratios of listed companies may be well explained by adjusted Modigliani and Miller theory combined with agency cost theory. (2) In order to borrow long-term outside funds, the ability to provide collateral is very important, even for qualified and listed companies. (3) Government controlled companies have weak incentives to save corporate tax payments by using debt financing. (4) In term of long-term fundraising, government controlled companies are perceived to present less risk than other companies. (5) In the determinants of fundraising, there is almost no difference in the determinants of fundraising between companies listed on the Ho Chi Minh stock exchange and those on the Hanoi stock exchange. (6) Compared to the fundraising activities of small- and medium-sized companies analyzed by Nguyen (2006) and Biger et al. (2008), those of listed companies could be better explained by using standard corporate financing theory. These observations suggest several policy implications. (1) Economic reform (Doi Moi) policies have successfully built up market based corporate financing systems for listed companies in Vietnam; however, (2) the protection of outside creditors should be further enhanced, as should be the disclosure of corporate information. (3) Further liberalization and privatization of the banking sector is urgently needed.Corporate Finance, Capital Structure, Transition Economy, Vietnam

Fundraising Behaviors of Listed Companies in Vietnam: An Estimation of the Influence of Government Ownership

This study investigates the capital structure and investment activities of listed companies on the Hanoi Securities Exchange and the Ho Chi Minh Securities Exchange in Vietnam. Estimation analysis using panel data covering the four-year period 2006-2009 revealed the following results. (1) Standard corporate financing theories such as trade-off theory and agency cost theory could be appropriate for explaining the capital structure of listed companies in Vietnam. (2) Compared to the fundraising activities of the companies analyzed by Nguyen (2006) and Biger et al. (2008), the fundraising activities of the listed companies were better explained by standard agency cost theory. (3) There are differences between the determinants of long-term fundraising and short-term fundraising of listed companies in Vietnam. (4) The fundraising determinants of state-controlled companies are different from those of other companies; state-controlled companies have an advantage in tapping external debt funds, and their incentive to reduce their tax payments by debt financing is weaker. (5) The companies listed on the Ho Chi Minh Securities Exchange depended less on debt financing than those listed on the Hanoi Securities Exchange. (6) Listed companies in Vietnam face weak incentives to reduce their tax payments by debt financing because the effective corporate tax rate is low. These results imply that the economic reforms (“Doi Moi”) implemented by the Vietnamese government, which aims to create an economic system based on market mechanisms, have achieved some of their goals in terms of fund mobilization and corporate financing. However, our estimation study illustrates several limitations of economic reforms, such as the opaque relationship between state-controlled companies and government banks, financial restrictions on investment activities, and inactive investment of companies that are state-controlled or listed on the Ho Chi Minh Securities Exchange.Corporate Finance, Capital Structure, Transition Economy, Vietnam

Level of Corporate Social Responsibility Disclosure and Financial Performance: A Case Study in Ho Chi Minh City, Vietnam

Research aims: This study examines the influence of firm size, firm age, current ratio, and type of audit company on the corporate social responsibility disclosure level and its impact on the financial performance of listed enterprises in Vietnam.Design/Methodology/Approach: Financial data were collected from the annual reports of 109 enterprises listed on the Ho Chi Minh City Stock Exchange, Vietnam, from 2016 to 2020. This research employed the Random Effects Model (REM), Fixed Effects Model (FEM), and Feasible Generalized Least Squares (FGLS) to deal with the drawbacks of the regression models, as mentioned.Research findings: The findings support the positive influence of firm size, firm age, and the type of auditing firm on the level of CSR information disclosure of listed manufacturing enterprises. Also, the extent of CSR disclosure positively affected financial performance, confirming the positive relationship between CSR disclosure level and financial performance.Theoretical contribution/Originality: This study contributes to governance theory by expanding and combining stakeholder and legitimacy theories with criteria for measuring the level of CSR disclosure in the Vietnamese context. Therefore, the study results are a valuable reference for theorists who tirelessly pursue the CSR topic.Practitioner/Policy implication: This study proposes recommendations for practitioners who should focus on enhancing the level of CSR disclosure to generate more benefits and result in better financial performance. Also, policy implications should be raising the senior managers’ awareness of the level of CSR disclosure, firm size, firm age, and type of audit and establishing a stable legal framework for the level of CSR disclosure in line with international standards and practices.Research limitation/Implication: The sample data were only collected from manufacturing companies listed on Ho Chi Minh Stock Exchange, and the analyzed content and measurement of the level of CSR disclosure primely relied on the enterprises’ annual reports

Firm History and Managerial Entrenchment: Empirical Evidence for Vietnam Listed Firms

Managerial entrenchment occurs when managers are able to manipulate financing decisions to support their own interests rather than those of shareholders. Such possible actions can involve deception and fraud. Furthermore, the market timing activity is explained by managers' financing decisions through which companies choose to raise debt or equity to finance their investment opportunities. Nevertheless, the relationship between managerial entrenchment and leverage ratio, together with the link between market timing and leverage ratio, have not been considered carefully and investigated in the Vietnamese context. The paper provides empirical evidence of the effect of managerial entrenchment and market timing through firms' histories on leverage ratio in Vietnam using a sample of 289 non-financial firms listed on the Ho Chi Minh Stock Exchange (HOSE) during the period 2006-2017. OLS, GMM and the endogenous switching methods are used for estimating the models. Findings from the paper indicate that there is a negative relationship between managerial entrenchment and leverage ratio, and that there is a negative effect of firm history, including financial deficit, various timing measures, and stock price history on the leverage ratios of Vietnam's listed firms

The Impact of Corporate Governance on the Quality of Accounting Information: Research Based on Listed Companies on Vietnam's Stock Exchange

Purpose: This research aims to evaluate the impact of corporate governance on the quality of accounting information in listed companies on the Vietnamese stock exchange.   Theoretical framework: Corporate governance focuses on the structure of ownership, the characteristics of director and supervisory boards. The quality of accounting information is evaluated under the perspectives of information users and information auditors.   Design/methodology/approach: This research analyzes primary and secondary data from 193 listed companies as of 2021 and uses both qualitative and quantitative research methods.   Findings: The results show that the factors affecting corporate governance that have a proportional impact on the quality of accounting information include: Government ownership, Supervisory Board ownership, major shareholders ownership, number of board members, professional qualifications of the association board of directors, and that have an inverse impact is the duality between the Board of directors and the managing directors, and that have no impact are the number of members in the supervisory Board and professional qualifications of the supervisory board.   Research, Practical & Social implications: From the research results, the authors propose recommendations to improve the quality of accounting information through corporate governance.   Originality/value: The value of the study is pointing out the impact of corporate governance on the quality of accounting information in listed companies on the Vietnamese stock exchange meaningful in creating trust among users to attract investment domestically and internationally

Business Diversification and Financial Supply Chain Efficiency of Companies Listed on Ho Chi Minh City Stock Exchange

Abstract— This research evaluate the impact of business diversification of companies listed on HoSe from 2013 to 2017, the research has used balance panel data form of 145 listed enterprises. Business diversification is measured according to the Entropy index, measured by turnover in the Grade 2 subdivision and Level 4 subdivision according to Vietnam's industry standard. The results of the study showed that diversification would generally help improve financial efficiency, however, for those enterprises focusing on diversification outside the industry will reduce financial efficiency. In addition, the results of the study also showed that businesses increasing financial leverage for the purpose of expanding the left-sector business will be unstable, those businesses scaling up to strengthen the true diversification of businesses with experience will help increase their financial efficiency

Russian roulette from the Euromaidan protest to the Ukraine invasion: Is it different this time?

We scrutinise the impact of two periods of Russo-Ukraine strife: (a) the Russo-Ukraine war that started in February 2022; and (b) the Euromaidan protest of November 2013, on the financial markets. We observe severe ramifications in terms of abnormal returns, price discovery and time-varying herding between certain group of assets. Whereas the US dollar and the yen consistently serve as safe haven assets (proxied by negative or low unconditional correlations) to opposing countries' stock indexes and currencies in both periods, we generally document heterogeneity in the financial assets' degree of response to them