The effect of institutional ownership on listed companies' performance in Vietnam

Abstract

This research aims to study the impact of the institutional ownership on the listed companies' performance in Vietnam. With the data from the annual financial statements of 121 companies listed on the Ho Chi Minh City Stock Exchange, Vietnam from 2008 to 2013, the research results showed that institutional ownership had a significant impact on company's performance through Tobin's Q, ROA and ROE. However, when dividing the institutional ownership into domestic institutional ownership and foreign institutional ownership, there were different effects. And there were differences among changes in levels of domestic and foreign institutional ownership and the companies' performance. In addition, the study also considered the effects of other factors of the institutional ownership including numbers of institutions in the board of management and the representative for the institutional ownership in the board of directors.