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Insiders, Outsiders and Performance of Vietnamese Firms

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 24 No. 3 (2022) · pp. 324–341

DOI
10.22146/gamaijb.65194
ISSN
2338-7238, 1411-1128
Published
2022-10-06
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

The consensus in the finance literature is that a large proportion of inside ownership (defined as greater than 5% share ownership by non-institutional holders, managerial holdings, founding family holdings, cross-shareholdings by affiliated firms and ownership by creditors) tends to be associated with more unsatisfactory performance (as measured by ROE or ROA) when compared to firms with lower inside ownership, all else equal. However, this need not be the case if insiders act as monitors of the firm and have the same interest in returns as outsiders. Ownership structure and firm level financial performance have not been widely studied in Vietnam. Using data from 729 listed firms in Vietnam for 2018, we test the hypothesis that greater insider ownership has a negative impact on firm performance. We found that Vietnam's insiders play a monitoring role, exercising their relative power to ensure the firm's profitable functioning. These findings are inconsistent with research on Japanese groupings, as well as other findings. The Vietnamese stock market does not appear to be negatively affected by insider influence; indeed, insiders appear to act as positive monitors.

Keywords

Collaboration network of the authors

6 authors · 9 co-authorship links · 6 across different organisations

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  • VNU University of Economics and Business
  • University of Alberta
  • Coventry University
  • Vietnam National University, Hanoi
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
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Co-authorOrganisationJoint articles
Anh Trần Thị VânVNU University of Economics and Business1
Nhung NguyenVNU University of Economics and Business1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 28 Okt 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Insiders, Outsiders and Performance of Vietnamese Firms</dc:title>
	<dc:creator>Beason, Richard</dc:creator>
	<dc:creator>Tran, Tu Thi Thanh</dc:creator>
	<dc:creator>Dao, Dong Phuong</dc:creator>
	<dc:creator>Nguyen, Hong Minh</dc:creator>
	<dc:subject xml:lang="en-US">Business; Management</dc:subject>
	<dc:subject xml:lang="en-US">Bank, ownership structure, insider investor, outsider investor</dc:subject>
	<dc:subject xml:lang="en-US">G21, G23, G32</dc:subject>
	<dc:description xml:lang="en-US">The consensus in the finance literature is that a large proportion of inside ownership (defined as greater than 5% share ownership by non-institutional holders, managerial holdings, founding family holdings, cross-shareholdings by affiliated firms and ownership by creditors) tends to be associated with more unsatisfactory performance (as measured by ROE or ROA) when compared to firms with lower inside ownership, all else equal. However, this need not be the case if insiders act as monitors of the firm and have the same interest in returns as outsiders.  Ownership structure and firm level financial performance have not been widely studied in Vietnam.  Using data from 729 listed firms in Vietnam for 2018, we test the hypothesis that greater insider ownership has a negative impact on firm performance. We found that Vietnam's insiders play a monitoring role, exercising their relative power to ensure the firm's profitable functioning. These findings are inconsistent with research on Japanese groupings, as well as other findings. The Vietnamese stock market does not appear to be negatively affected by insider influence; indeed, insiders appear to act as positive monitors. </dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:contributor xml:lang="en-US"></dc:contributor>
	<dc:date>2022-10-06</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
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	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/65194</dc:identifier>
	<dc:identifier>10.22146/gamaijb.65194</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 24, No 3 (2022): September-December 2022; 324-341</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/65194/34845</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2022 Gadjah Mada International Journal of Business</dc:rights>
	<dc:rights xml:lang="en-US">http://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>