Impacts of Ownership Structure on Systemic Risk of Listed Companies in Vietnam

• Published in: The Journal of Asian finance, economics, and business Vol. 7; no. 2; pp. 107 - 117
• Main Authors: VU, Van Thi Thuy, PHAN, Nghia Trong, DANG, Hung Ngoc
• Format: Journal Article
• Language: Korean
• Published: 한국유통과학회 28.02.2020; Korea Distribution Science Association
• Subjects: Vietnam; Ownership Structure; Systemic Risk; Listed Companies
• ISSN: 2288-4637; 2288-4645

The research objective of the paper is to clarify the factors influencing system risks of listed companies in Vietnam, with a focus on clarifying the relationship and quantifying the impacts of ownership structure on systemic risk of listed companies. The data used in this study included financial statements and stock price data of listed companies on the Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange of Vietnam stock market in the period from 2010 to 2017. The paper used the method of estimation in establising the regression models to choose among three models: Random Effect Model, Fixed Effect Model or Pooled OLS for regression using Stata statistical software. The research results showed that state ownership and ownership by foreign investors were positively related to systemic risk, while ownership by domestic investors had a reverse relationship with systemic risk of listed companies in Vietnam. In addition, as a control variable, both company size and profitability had an effect on the systemic risk of listed companies in the research sample. Based on the research results, the authors interpreted some of the implications in order to minimize systemic risks in the operation of listed companies in Vietnam.