Business group, corporate governance and business performance: A study in Vietnam

Thong Tien Nguyen (), Nhi Phuong Doan and Tuong Minh Tran
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Thong Tien Nguyen: Ho Chi Minh City University of Foreign Languages and Information Technology, Ho Chi Minh City, Vietnam
Nhi Phuong Doan: Ho Chi Minh City University of Technology (HCMUT), Ho Chi Minh City Vietnam National University Ho Chi Minh City, Ho Chi Minh City, Vietnam
Tuong Minh Tran: Ho Chi Minh City University of Technology (HCMUT), Ho Chi Minh City Vietnam National University Ho Chi Minh City, Ho Chi Minh City, Vietnam

HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 2025, vol. 15, issue 2, 67-84

Abstract: Corporate governance is essential for businesses, especially those with complex structures. This research examines the relationship between business group structures, corporate governance, and business performance in Vietnam, providing theoretical insights and practical management recommendations. Analyzing data from over 100 of the largest listed companies on the Vietnam Exchange AllShare, the study used the Fixed Effects Model, Random Effects Model, and Feasible Generalized Least Square estimations to assess the impact of business groups on governance and performance. The study reveals a positive but relatively weak impact of expanding the scale of business groups on the quality of corporate governance and business efficiency. Audit Committees, Independent Directors, and company size positively influence governance quality, while liquidity has a negative impact. Similarly, these factors positively affect business efficiency, whereas financial leverage has an inverse relationship. This research enhances the understanding of how business group structures influence corporate governance and business efficiency in Vietnam. It underscores the importance of good governance principles to improve accountability, transparency, and protect stakeholder interests, highlighting the positive role of certain governance structures in enhancing business efficiency.

Keywords: agency problem; business group; business performance; corporate governance (search for similar items in EconPapers)
JEL-codes: G32 G34 H30 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bjw:econen:v:15:y:2025:i:2:p:67-84

DOI: 10.46223/HCMCOUJS.econ.en.15.2.3275.2025

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