Thesis Public Defense | VNP25 Nguyễn Thị Thu Thanh

Corporate governance, diversification strategies and firm performance: Evidence from listed companies on Ho Chi Minh stock exchange

Student: Nguyễn Thị Thu Thanh, VNP 25

Supervisor: Dr. Vũ Việt Quảng

Abstract:

This study evaluated the effects of internal corporate governance to the levels of diversification in Vietnam, a developing country in Asia, and explored the effectiveness of the diversification strategy to firm performance. The data of 111 listed firms on HOSE from 2010 to 2019 was collected. By using OLS, FEM, REM, the study concluded agency theory could explain the relationship between corporate governance and diversification in case of Vietnam. The relationship between CEO’s ownership or board size and diversification was not significant, while the duality in position of CEO, board independence and blockholder had negative impact on the degree of diversification. This study also contributed some practical results in Vietnam market that the most diversified companies will significantly increase the firm value by taking advantage of corporate governance.

Keywords: Corporate governance, diversification, firm performance.