Factors affecting corporate governance: The case of state-owned enterprises with 100% capital ownership in Vietnam

Tan Huu Nguyen

Article ID: 4810
Vol 8, Issue 7, 2024

VIEWS - 277 (Abstract) 175 (PDF)

Abstract


This study aimed to evaluate the influence of various factors on the corporate governance of state-owned enterprises with 100% capital ownership in Vietnam. Employing quantitative research methods, the article conducted an analysis of 250 survey samples taken from such enterprises and utilized regression analysis techniques. The findings revealed eight factors that significantly impact the corporate governance of these entities in Vietnam: enterprise awareness, ownership model, the state’s role as an owner, integration, board of members, legal framework, managerial experience, and activity objectives. Leveraging these research outcomes, several recommendations have been proposed to enhance the corporate governance practices within state-owned enterprises holding complete capital ownership in Vietnam.


Keywords


factors; corporate governance; state-owned enterprises; 100% capital ownership

Full Text:

PDF


References


Berle, A. A., & Means, G. C. (1932). The modern corporation and private property. Transaction Publishers.

Chen, C. (2016). Solving the puzzle of corporate governance of state-owned enterprises: The path of the Temasek model in Singapore and lessons for China. Northwestern Journal of International Law & Business, 36(2).

Fforde, A. (2004). Vietnam state owned enterprises: ‘Real property’, commercial performance and political economy (City University of Hong Kong Working Paper No. 69).

Guluma, T. F. (2021). The impact of corporate governance measures on firm performance: The influences of managerial overconfidence. Future Business Journal, 7(1). https://doi.org/10.1186/s43093-021-00093-6

Hung, P. T., & Thang, N. T. (2012). CEOs and the board of directors. Labor—Social Publishing House.

International Monetary Fund. (2020). Stat-owned enterprises: The other government. https://doi.org/10.5089/9781513537511.089.ch003

Islam, M. S. U., Wong, W. C., & Mat Yusoff, M. Y. B. (2023). Types of political connections, election years, and firm performance in Pakistan: Moderating role of external monitoring. Cogent Business & Management, 10(2). https://doi.org/10.1080/23311975.2023.2224139

Khanh, L. Q. (2020). Renewing governance to enhance competitive capacity in state-owned enterprises [PhD thesis]. Foreign Trade University, Hanoi, Vietnam.

Kim, K., & Nguyen, T. (2019). Reform of state-owned enterprises in Vietnam to increase performance and profit (ADBI Working Paper Series No. 999). Asian Development Bank Institute.

Le, M. T. (2010). Corporate governance for publicly listed companies, for businesses and investors. National Political Publishing House.

Linh, C. T. (2017). Corporate governance in equitized non-state-owned enterprises—Exemplary study at Bao Viet Group [PhD thesis]. Foreign Trade University, Hanoi, Vietnam.

Mattlin, M. (2009). Ownership control strategies and management in Chinese state-owned enterprises (BICCS Asia Paper No. 4).

Na, L. (2019). Current legal framework on state-owned enterprise governance in Vietnam [PhD thesis]. Academy of Social Sciences, Vietnam.

Nguyen, D. C. (2008). Perfecting corporate governance to promote economic development in Vietnam. Journal of Economic Management, (21), 7+8.

Nguyen, T. H., Nguyen, Q. T., Nguyen, D. M., & Le, T. (2023). The effect of corporate governance elements on corporate social responsibility reporting of listed companies in Vietnam. Cogent Business & Management, 10(1). https://doi.org/10.1080/23311975.2023.2170522

Nguyen, T. S. (2010). Corporate governance issues in Vietnamese enterprises [PhD thesis]. University of Da Nang, Vietnam.

Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15). 1699–1710. https://doi.org/10.1016/j.jclepro.2008.04.020

Sindakis, S., Zhang, C., Zeng, Q., et al. (2022). The strategic resources and competitive performance of family-owned and non-family-owned firms in the retail business of Los Angeles. Journal of the Knowledge Economy.

Sjoholm, F. (2006). The political logic of corporate governance in China’s state-owned enterprises. European Institute of Japanese Studies.

Smith, N. C. (2001). Changes in corporate practices in response to public interest advocacy and actions. In: Gundlach P. N. B. a. G. T. (editor). Handbook of marketing and society. Thousand Oaks, CA: Sage Publications. pp. 123-145.

Tricker, B. (2015). Corporate governance: Principles, policies and practices, 3rd ed. Oxford University Press.

Vallentin, S. (2015). Governmentalities of CSR: Danish government policy as a reflection of political difference. Journal of Business Ethics, 127, 33–47. https://doi.org/10.1007/s10551-013-1703-5

Van der Heijden, A., Driessen, P. P., & Cramer, J. M. (2010). Making sense of corporate social responsibility: Exploring organizational processes and strategies. Journal of Cleaner Production, 18(18), 1787-1796. https://doi.org/10.1016/j.jclepro.2010.07.024

Van, P. T. T. (2018). Assessing the application level of OECD corporate governance principles for Vietnamese enterprises. Ministry of Finance.

Walker, N. K. G., & Chen, Y. (2019). Social innovation in tourism: Unleashing the time-money constraint. Journal of the Knowledge Economy, 10, 1700–1719. https://doi.org/10.1007/s13132-018-0534-0

Wang, J. (2014). The political logic of corporate governance in China’s state-owned enterprises. Cornell International Law Journal, 47.

Ward, H. (2004). Public sector roles in strengthening corporate social responsibility: Taking stock. The World Bank, International Financial Corporation.

Ward, H., Fox, T., Wilson, E., & Zarsky, L. (2020). CSR and developing countries what scope for government action? Available online: https://pubs.iied.org/pdfs/G02247.pdf (accessed on 9 March 2024).

Wirba, A. V. (2023). Corporate social responsibility (CSR): The role of government in promoting CSR. Journal of Knowledge Economy. https://doi.org/10.1007/s13132-023-01185-0

Wong, S.C.Y. (2004). Improving corporate governance in SOEs: An integrated approach. Corporate Governance International, 7(2).

Zeng, F., Lee, S. H. N., & Lo, C. K. Y. (2020). The role of information systems in the sustainable development of enterprises: A systematic literature network analysis. Sustainability, 12(8). https://doi.org/10.3390/su12083337




DOI: https://doi.org/10.24294/jipd.v8i7.4810

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Tan Huu Nguyen

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.