Relationship between blockholders and performance of enterprise-Empirical evidence in listed firms on the Ho Chi Minh city stock exchanges

Abstract

This paper aims to investigate the relationship between the ownership structure of major shareholders (blockholders) and listed firm performance in Vietnam. Using GMM regression method and financial data of approximately 400 listed firms on the Ho Chi Minh City Stock Exchange in the period from 2010 to 2020. The results show that there is a relationship between the ownership structure of blockholders and the performance of Vietnamese enterprises. Specifically, blockholders have a positive impact on the profitability of the business, however the correlation coefficient is extremely small. Moreover, domestic blockholders has no impact on the firms’ROA. Foreign blockholder have been shown to have an impact on business performance but not consistently. While institutional blockholders have a positive impact on the firm performance, foreign individual blockholders have a negative impact during the study period. Finally, the results also show that performance of Stateowned enterprise with at least 51% state ownership are worse than other enterprises.