Determinants of Vietnamese Listed Firm Performance: Competition, Wage, CEO, Firm Size, Age, and International Trade

J. Risk Financial Manag. 2019, 12, 62; doi:10.3390/jrfm12020062

19 Pages Posted: 20 Sep 2019

See all articles by Thi Hanh Vu

Thi Hanh Vu

Foreign Trade University (FTU) - School of Economics and International Business

Van-Duy Nguyen

affiliation not provided to SSRN

Manh-Tung Ho

Phenikaa University - Center for Interdisciplinary Social Research

Quan Hoang Vuong

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management; Phenikaa University

Date Written: April 11, 2019

Abstract

This study investigates the relationship between firms’ competition, wage, CEOs’ characteristics, and firm performance (measured by net income per employee, return on assets (ROA) and return on equity (ROE)) of Vietnam’s 693 listed firms in 2015 using both the ordinary-least-square (OLS) and quantile regression methods. Triangulating the results coming from the analysis of three different measures of firm performance, this study consistently confirms that the sex of CEOs and chairman turns out to be insignificant in explaining firm performance and there is a negative association between capital intensity and firm performance. For financial firms, the age of a firm and average wage per employee are negatively associated with all types of firm performance. The quantile regression method shows that the age of a firm is negatively correlated with its net income per employee for small firms, while it is insignificant for medium-sized firms. Meanwhile, firm size is positively associated with firm performance. These results indicate Vietnam’s business activities are still concentrating on low labor cost, labor intensive, and low-tech production, thus, policies that promote innovation and high-tech applications should be encouraged.

Keywords: competition; wage; net income per employee; firm performance; productivity; Vietnam; listed company

Suggested Citation

Vu, Thi Hanh and Nguyen, Van-Duy and Ho, Manh-Tung and Vuong, Quan Hoang, Determinants of Vietnamese Listed Firm Performance: Competition, Wage, CEO, Firm Size, Age, and International Trade (April 11, 2019). J. Risk Financial Manag. 2019, 12, 62; doi:10.3390/jrfm12020062, Available at SSRN: https://ssrn.com/abstract=3452356

Thi Hanh Vu (Contact Author)

Foreign Trade University (FTU) - School of Economics and International Business ( email )

Vietnam

Van-Duy Nguyen

affiliation not provided to SSRN

Manh-Tung Ho

Phenikaa University - Center for Interdisciplinary Social Research ( email )

Vietnam

Quan Hoang Vuong

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

ULB CP 145/01
21 Ave. F.D. Roosevelt
Brussels, Bruxelles 1050
Belgium
+32-2-6504864 (Phone)
+32-2-6504188 (Fax)

HOME PAGE: http://www.ceb-ulb.com/vuong-quan-hoang.html

Phenikaa University ( email )

To Huu road, Yen Nghia
Ha Dong district
Hanoi, Hanoi 100803
Vietnam

HOME PAGE: http://sites.google.com/site/vuongqh2019/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
44
Abstract Views
642
PlumX Metrics