Firms In Vietnam Research Articles

Bribery Transfer Among Foreign‐Invested Firms in Vietnam

ABSTRACTBribery in international business is an important field of study, but lack of research examines which types of firms are more likely to pursue bribery transfer, or subcontracting bribery‐related transactions to the third party or intermediaries, instead of handling themselves. We conduct an empirical investigation into this issue using rich data from the PCI survey, which has been conducted annually in Vietnam during the period 2017–2020. The empirical results show that, in dealing with risks associated with bribery engagement, foreign‐invested firms in Vietnam pursue two different types of risk self‐controlling and risk transferring. Investors from OECD countries, subsidiaries of multi‐national corporations, and firms with larger bribery amount are more likely to pursue risk transferring strategy by subcontracting bribery‐related transactions to intermediaries, compared to the other firms' cohorts. Firms operating a longer time in Vietnam and bigger sized ones are more likely to follow risk self‐controlling strategy by handling bribery‐related transactions themselves. These results are robust while controlling for firms' legal status, year‐fixed effects, and, especially, nonresponse and selection biases, which are inherent in the bribery decision process. This study thus contributes greatly to international business in emerging economies where foreign‐invested firms exhibit heterogenous motives in dealing with risks associated with bribery‐related transactions.

Bridging the Gap: Unveiling the Factors of Government Support Influencing the Success of Vietnamese Agricultural SMEs Post-COVID-19

This study investigates the essential role of government aid in enhancing the resilience and success of small and medium-sized agricultural firms in Vietnam during the COVID-19 pandemic. The research fills a gap in the existing literature by concentrating on strategies for long-term recovery rather than immediate reactions. Using a structured survey and multivariate linear regression analysis, the study engaged 200 proprietors and executives from the Red River and Mekong Delta areas. The results exhibit a favorable association between governmental support and the success of small and medium-sized enterprises, emphasizing the necessity of tailored governmental interventions to enhance sector competitiveness. While offering valuable insights for policymakers, the study’s geographical and sectoral scope is restricted, indicating the need for more extensive research and qualitative evaluations to deepen comprehension of the effects of governmental support in diverse settings. This research has the potential to significantly influence policy formulation and further scholarly investigation in the economic landscape post-pandemic.

Intellectual property rights protection and sustainable innovation performance: The mediating role of technology spillover

AbstractDespite extensive research into the factors driving sustainable innovation, there remains a significant gap in understanding the impact of intellectual property rights (IPR) protection. This study delves into how IPR protection influences sustainable innovation performance and explores the mechanism of technology spillover and the condition of absorptive capacity. Analyzing data from 266 firms in Vietnam, our findings indicate a positive correlation between IPR protection and technology spillover. Additionally, we find that technology spillover mediates the relationship between IPR protection and sustainable innovation performance. Interestingly, we show that absorptive capacity bolsters the relationship between technology spillover and sustainable innovation performance. These insights offer valuable additions to the existing literature on IPR protection and sustainable innovation literature. Implications for both theory and practice are discussed in detail.

The relationship between firm life cycle and firm financial distress: Empirical evidence from listed firms in Vietnam

The relationship between firm life cycle and firm financial distress: Empirical evidence from listed firms in Vietnam

Board Gender Diversity and Firm Performance: Evidence from Listed Energy Firms in Vietnam

Board Gender Diversity and Firm Performance: Evidence from Listed Energy Firms in Vietnam

Factors Affecting the Labor Productivity of Garment Firms in Nam Dinh Province, Vietnam

Under the impacts of the 4th Industrial Revolution, garment firms in Vietnam are facing various challenges, and improvement in their labor productivity is one of the important measures to overcome these challenges. This study, therefore, investigated the determinants of the labor productivity of garment firms in Nam Dinh province. The data used for this study were extracted from the Enterprise Survey Dataset in 2021, and descriptive statistics, comparative analysis, and the Cobb-Douglas function in logarithm form were the major methods employed for the study. The study findings underscored the positive impacts of fixed assets and business management costs, average payments to employees, exporting activities, and the utilization of internet resources on labor productivity. The study revealed that firm size, gender composition, and age of firm leaders do not significantly influence labor productivity, emphasizing the complexity and industry-specific nuances of these relationships. Based on the insights gained from the study, several strategic suggestions were proposed to improve the labor productivity of garment firms in Nam Dinh province in the future.

‘Caught in the middle’: Effects on and reactions of Vietnamese timber exporters in the context of US-China economic sanctions

The impact of primary sanctions on firms has been well-documented in the literature. However, the impact of secondary sanctions on businesses in third countries and their strategic responses has been under-researched. This study explores this issue by investigating Vietnamese timber exporters in the context of US-China economic sanctions. Taking a case study approach, interviews were conducted with key government and industry officials as well as firms in Vietnam. Using the key concepts from the realism school of thought and the stakeholder theory as the analytical lenses, we found that third countries’ businesses encountered both positive and negative impacts of the sanctions and employed four strategies, namely aligning, aspiring, influencing, and insulating to respond to the challenges and opportunities these sanctions presented. This study contributes to identifying the notion of temporality and explaining how and when third-country firms intertwine both reactive and anticipatory strategies.

The Effects Of Foreign Ownership On Corporate Risk Findings From Quantile Regression And FSQCA

The study investigates the correlation between foreign ownership and corporate risk at 147 listed firms in Vietnam from 2015 to 2019. Quantile regression and fuzzy-set Qualitative Comparative Analysis (fsQCA) technique method are applied to examine this relationship. Although the findings reveal that foreign ownership has an impact on corporate risk, the direction of this impact varies depending on the specific conditions. These empirical results have significant implications for firms in managing risks through effective policies related to foreign ownership. The findings will also enable foreign investors to assess the risk level of their investments when analyzing the current situation of a given firm, thereby adjusting their investment capital appropriately.

Unveiling the Nexus between Capital Structure Dynamics and Stock Performance: A Panel Data Approach of Listed Firms in Vietnam

Unveiling the Nexus between Capital Structure Dynamics and Stock Performance: A Panel Data Approach of Listed Firms in Vietnam

The effects of managerial gender and education on firm performance

The role of women has been increasingly affirmed as gender equality has become the norm, particularly when it comes to how firms should be managed. In addition, education instills knowledge that could change managerial perspectives, thus affecting the ways they manage firms. This study uses a dataset covering 617 non-financial firms listed on the Vietnamese stock market from 2010 to 2021 to examine the impact of managerial gender and education on firm performance, measured in accounting- and market-based values. The System Generalized Method of Moments was employed to address endogeneity and other defects normally associated with panel data. The results reveal that having female chief executive officers (CEOs) positively affects firms. Additionally, a CEO’s educational background positively affects both accounting- and market-based measures. The study provides new evidence of the positive effects of female CEOs and highly educated CEOs on firm performance compared with some extant studies in Vietnam. Based on the research findings, relevant suggestions are proposed regarding the welcoming features of CEOs in managing firms in Vietnam.

Spillover effects of foreign and domestic exporting firms on export decisions of local manufacturing firms: Evidence from Vietnam

Our study examines the spillover effects that arise from foreign and domestic exporting firms on the export decisions of local manufacturing firms in Vietnam between 2010 and 2018. There are positive horizontal spillover effects from both foreign and domestic exporting firms, while negative spillover effects are detected through the backward channel. Domestic exporting firms are found to generate positive forward spillover effects, whereas foreign direct investment exporting firms have negative forward spillover effects. Moreover, we observe opposite spillover effects from foreign and domestic exporting firms on the export exit of domestic firms, with a negative impact under the horizontal channel and a positive impact under the backward channel. Our research also reveals the effects of firms’ characteristics on the export participation and exit of domestic firms. The study suggests that the Vietnamese government should focus on enabling the FDI sector to create positive spillover effects, attracting foreign firms with export potential as well as supporting domestic exporting firms using and providing local intermediate inputs, and improving the technological and absorptive capabilities of domestic firms.

Uncertainty in banking and debt financing of firms in Vietnam.

This study explores the effects of banking uncertainty on firms' debt financing. Employing data from 2007 to 2022 of Vietnam-a bank-based economy, we document that banking uncertainty negatively impacts corporate debt. The impact firmly holds across various debt maturities and sources, with the most predominant driver witnessed in bank debt. We also investigate the potential underlying mechanism linking banking uncertainty to debt financing, thereby validating the working of three crucial channels, including increased costs of debt, substitution of trade credit, and contractions in firm investment. Furthermore, conducting extended analysis, we find that debt financing exhibits more pronounced reactions to banking uncertainty for firms with closer ties to banks or during macroeconomic shocks, as captured by the financial crisis and the COVID-19 pandemic. Our findings survive after robustness checks by alternative measurement, static and dynamic econometric models, and endogeneity controls.

Impact of foreign ownership on stock return volatility of financial firms in Vietnam

The paper investigates the impact of foreign ownership on the stock return volatility of financial firms in Vietnam. Applying panel regression models on a year-end research sample of 23 banks and financial firms listed on stock exchanges in Vietnam from 2017 to 2022, the study assures the negative relationship between foreign ownership and the stock return volatility, implying that increasing foreign ownership reduces the volatility of stock returns of financial firms. Our study’s novelty is reflected in following aspects. First, our study, examining about the foreign ownership's impact on stock returns’ volatility in emerging stock market conditions, will enrich this research field by contributing additional empirical evidence to the field through a concrete and well-designed research. Additonally, our research findings not only provide useful information about the volatility of those influential shares in mentioned industries coupled with its determinants but also support investors and policymakers in making investment decisions informedly as well as reviewing suitable regulations for investors and capitals from foreign countries, which is a critical aspect in helping Vietnam's stock market to expand more steadily and sustainably.

The influence of auditor ethics on audit quality: Analyzing key factors in Vietnamese audit firms

This paper aims to analyze the possible influence of auditor ethics (AE) factors on audit quality (AQ). Additionally, this study examines whether AE can mediate the relationship between various factors and AQ. These factors include independence, competence, work experience, ethical standards, and due care. Data were collected using structured questionnaires sent by post or email to auditors, audit team leaders, and deputy managers/heads of 314 independent audit firms in Vietnam. Using SPSS 26 and AMOS 24 for analysis, the results show positive relationships between competence, work experience, ethical standards, and AE, as well as between competence, due care, and AQ. Negative relationships were found between independence, due care, and AE and between independence, work experience, ethical standards, and AQ. These findings provide important recommendations for auditing companies to enhance ethics and AQ, helping them maintain loyal customers, attract potential clients, and further develop audit services in Vietnam.

Collaborative entrepreneurship and social innovation performance: Effects of institutional support and social legitimacy

AbstractTo date, our understanding of how collaborative entrepreneurship influences social innovation performance is limited. In this article, we developed and tested a model that examines the effect of collaborative entrepreneurship on social innovation performance and introduced two boundary conditions of this relationship. Time‐lag data collected from 261 entrepreneurial firms in Vietnam yielded the following results. First, collaborative entrepreneurship positively influences social innovation. Second, institutional support boosts the effect of collaborative entrepreneurship on social innovation performance. Finally, the effect of collaborative entrepreneurship on social innovation performance is contingent on social legitimacy such that at high levels of social legitimacy, the effect of collaborative entrepreneurship on social innovation performance is amplified. These findings contribute to the collaborative entrepreneurship and social innovation literature and offer implications for practice.

Does Corporate Reputation Still Affect the Cost of Equity in an Emerging Market? Evidence from Managerial Overconfidence

Purpose: This paper examines the relationship between corporate reputation, managerial overconfidence, and the cost of equity in the context of Vietnam - a fast-growing emerging market. Design/methodology/approach: The paper employs Pooled Ordinary Least Square, Fixed Effect Model and Random Effect Model to test the effects of corporate reputation and managerial overconfidence on the cost of equity on 391 non-financial Vietnamese listed firms during 2011 and 2020. In addition, Principal Component Analysis is also applied for calculating the corporate reputation score. Findings: The finding shows that firms with higher corporate reputation are associated with a lower cost of equity. The results also indicates that despite the insignificant relationship between managerial overconfidence and the cost of equity, firms operated by overconfident managers can promote the negative effect between corporate reputa-tion and the cost of equity. In addition, the more reputable corporates increase, the lower the cost of equity will be. Research limitations/implications: Firms in Vietnam can manage the cost of equity better. Furthermore, based on the managers' characteristics and the state of corporate reputation, investors can make appropriate investment decisions. Originality/value: Prior research shows that corporate reputation is negatively related to the implied cost of equity. However, in Vietnamese stock market, under managerial overconfidence, the association between corporate reputa-tion and the cost of equity is also greatly affected. Furthermore, changes in corporate reputation also have certain effects on the cost of equity, especially when corporate reputation is enhanced every year.

The long-term effects of war on foreign direct investment and economic development: evidence from Vietnam

In this study, we find a negative effect of unexploded ordnance (UXO) on the geographical density of foreign direct investment and large firms in Vietnam. A 1 % increase in the proportion of UXO-contaminated areas leads to a 0.69 % relative decrease in the density of FDI firms within districts. Point estimates for the elasticity of the density of joint-venture FDI firms and state-owned enterprises (SOEs) due to UXO are smaller, equal to -0.56 and -0.36. Moreover, we also find that a 1 % increase in the proportion of UXO-contaminated areas leads to a 0.38 % relative decrease in the intensity of nighttime light.

How do financial constraints and market competition affect innovations: Evidence from Vietnam

This study delves into the effects of market competition and financial constraints on innovation within a transitional market. We implemented the Two Stage Least Squares regression to analyze a sample comprising 492 listed firms in Vietnam from 2008 to 2020. Our findings unveil an inverse U-shaped relationship between market competition and R&D intensity. Secondly, our study highlights the significant negative impact of financial constraints on R&D intensity. Thirdly, our research demonstrates the robustness of the nonlinearity of competition within small and medium-sized enterprises (SMEs). Our findings are consistent with agency theory, real options theory, and existing literature. Finally, our study offers practical implications for managers and policymakers aiming to foster innovation in developing countries, particularly amidst the digital transformation era.

CREATIVE AND PURE IMITATION UNDER ENVIRONMENTAL TURBULENCE: EVIDENCE FROM AN EMERGING ECONOMY

Due to the significance of imitation in business success and economic growth, there is an increasing interest of scholars in exploring different dimensions of imitation, illuminating the ‘black box’ of imitation. Given the increasingly turbulent nature of business environments, this study aims to investigate creative and pure imitation-based competitive strategies and their performance under different levels of environmental turbulence. A theoretical framework was tested using a sample of manufacturing firms in Vietnam. The results revealed that creative imitation is positively associated with sustained competitive advantage, while the impact of pure imitation on sustained competitive advantage is negligible. Furthermore, environmental turbulence affects both creative and pure imitation, with only creative imitation mediating the effects of environmental turbulence on sustained competitive advantage. Lastly, environmental turbulence amplifies the effect of pure imitation on sustained competitive advantage, while it has minimal moderating effects on the relationship between creative imitation and sustained competitive advantage. This study contributes to the literature by being the first to examine the effect of environmental turbulence on the performance of both creative and pure imitation strategies.

An empirical examination of financial performance and distress profiles during COVID-19: the case of fishery and food production firms in Vietnam

Purpose Financial ratios are often used to classify firms into different clusters of financial performance. This study aims to classify firms using financial ratios with advanced techniques and identify the transition matrix of firms moving clusters during the COVID-19 period. Design/methodology/approach This study uses compositional data (CoDa) analysis based on existing clustering methods with transformed data by weighted logarithms of financial ratios. The data include 66 listed firms in Vietnam’s food and beverage and fishery sectors over a three-year period from 2019 to 2021, including the COVID-19 period. Findings These firms can be classified into three clusters of distinctive characteristics, which can serve as benchmarks for solvency and profitability. The results also show the migration from one cluster to another during the COVID-19 pandemic, allowing for the calculation of the transition probability or the transition matrix. Practical implications The findings indicate three distinct clusters (good, average and below-average firm performance) that can help financial analysts, accountants, investors and other strategic decision-makers in making informed choices. Originality/value Clustering firms with their financial ratios often suffer from various limitations, such as ratio choices, skewed distributions, outliers and redundancy. This study is motivated by a weighted CoDa approach that addresses these issues. This method can be extended to classify firms in multiple sectors or other emerging markets.