Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Author:

Le Thi Thoan ,Vo Thi Ngoc Thuy

Abstract

This study assesses the relationship between market competition and corporate governance by analysing 562 non-financial companies listed on the Vietnamese stock market from 2010 to 2019. We used the quantitative method through oridinary least squares (OLS) robust and feasible generalised least squares (FGLS) regression to control heteroscedasticity and autocorrelation, which is suitable with panel data to test the above relationship. According to the research results, market competition has complementary and alternative effects on corporate governance, as reflected in the positive and negative effects of the variable Herfindahl-Hirschman Index (HHI), a proxy for market competition, on corporate governance. Market competition has a support impact on corporate governance, which is more evident in board size, CEO duality, and CEO ownership. In contrast, the impact of market competition substituted corporate governance and reduced the role of corporate governance, as demonstrated by the independent board members. As a result, our study provides an extended understanding of the factors affecting corporate governance, primarily based on contingency theory. Furthermore, this study provides evidence for further research in this field and identifies a number of potential solutions for investors and regulators.

Publisher

Penerbit Universiti Sains Malaysia

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3