How to Improve Shareholder Value Creation: With special reference to Listed Food Manufacturing Companies in Vietnam

Abstract

This article studies the impact of factors on shareholder value creation in a developing economy. We carried out an investigation into 40 listed food processing companies in Vietnam from 2015 to 2019. In this study, the regression analytical technique is used to study more deeply the effects of variables on shareholder value creation of food processing companies. The research helps us to have some conclusions. First, the financial performance of listed food-producing companies in Vietnam significantly impacts their shareholder value creation. Second, our research suggests that changes in the leverage, asset management, and flexibility of business operations could modify the firm financial performance, leading to the influence on shareholder value creation of Vietnam listed companies manufacturing food products. Despite extensive prior research on the subject, none of them delves deeper into how to improve shareholder value creation in Vietnam's listed food-producing companies. Instead of determining measures that can directly enhance shareholder value creation, our research suggests that this goal could be achieved through making decisions to change the internal factors of a company. Although the aim of "maximizing shareholder wealth" is achieved by solutions built based on the bridging effects of internal factors, they are more detailed and easier to implement.