Local business environment, domestic CEOs and firm performance in a transitional economy: Empirical evidence from Vietnam
Xuan Vinh Vo,
Thi Lam Anh Nguyen,
Le Quoc Tuan,
Hiep Ngoc Luu and
Kieu Trang Vu
Economic Analysis and Policy, 2020, vol. 66, issue C, 236-249
This paper investigates the impact of CEO origin on firm performance in the context of a transitional country. Our analysis, which uses data from over 298,000 firms operating in Vietnam, shows that firms operating in a more favourable business environment are less likely to employ a domestic expert as their CEO. However, firms managed by a domestic CEO appear to outperform those run by a foreign peer, especially when they operate in an environment characterised by having low entry costs, low time costs, high transparency, high proactivity, adequate business support, and sufficient labour training. This result is more pronounced for larger firms. These findings are robust to various model specifications. The paper provides informative implications to market participants, policy makers, and academics.
Keywords: Local business environment; Domestic CEO; Firm performance; PCI; Vietnam (search for similar items in EconPapers)
JEL-codes: G30 K40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:66:y:2020:i:c:p:236-249
Access Statistics for this article
Economic Analysis and Policy is currently edited by Clevo Wilson
More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Haili He ().