Method Of Moments Research Articles

Security fragility in developing countries: Do ICT matter?

Information and Communication Technologies in developing countries have increased considerably over the past three decades and fuel extremely plentiful literature. This article aims to assess the effects of Information and Communication Technologies on the security fragility observed. Thus, starting from the different dimensions of security fragility (internal conflicts, external conflicts), we specify and estimate a dynamic panel data model of a sample of 101 developing countries by the System Generalized Method of Moments over the period 1996-2019. Two main results emerge. Firstly, Information and Communication Technologies significantly reduce internal conflicts and external conflicts in developing countries. Controlled by two complementary measures of Information and Communication Technologies (quality and quantity), our results remain stable and robust. Secondly, the results of the mediation analysis show that the effect of Information and Communication Technologies on security fragility is mediated by financial development and remittances. We suggest, in addition to the quantitative and qualitative amelioration of the telecommunication infrastructures, the strengthening regulatory framework for the use of ICTs and the optimist promotion of a digital culture to mitigate intra- and inter-state conflicts.

Beyond borders: Assessing the influence of Geopolitical tensions on sovereign risk dynamics

We assess the impact of geopolitical risk and world uncertainty on the sovereign debt risk of 26 European Economies during the period 1984–2022, through the implementation of OLS-Fixed Effects regressions and the Generalized Method of Moments (GMM). We find that geopolitical tensions and global uncertainty in border countries contribute to the rise of European country's sovereign risk as measured by 5- and 10-year Credit Default Swaps (CDS) and bond returns. Moreover, this interconnection is more pronounced during turbulent times such as the subprime crisis. Lastly, we found that geopolitical tensions in other country’ groups such as South America and Asia have a significant impact on the government risks of European countries.

Does ownership structure drive the effect of CEO overconfidence on earnings quality?

PurposeThe purpose of this paper is to examine the effect of chief executive officer (CEO) overconfidence on earnings quality and the moderating role of ownership structure as a crucial corporate governance device.Design/methodology/approachThe paper uses the generalized method of moments (GMM) estimation method to test our models on a sample of 335 French companies between 2009 and 2020, i.e. 4,020 observations.FindingsThe results show that CEO overconfidence negatively affects earnings quality. This result supports the predictions of behavioral finance theory and suggests that CEO overconfidence is a behavioral bias that affects the quality of earnings. The authors also examined the effect of different types of ownership structures on this relationship. The results show the significant role of controlling shareholders, owner-managers, families and institutional investors in mitigating the negative effect of CEO overconfidence on earnings quality.Research limitations/implicationsThis paper has some limitations. First, other types of ownership structures could have been analyzed such as state ownership. Second, we ignored the role of the board of directors as an important governance mechanism in controlling overconfident CEOs’ actions.Practical implicationsCompanies should be aware of the potential risks associated with CEO overconfidence, which can compromise the faithful representation of earnings. This highlights the importance of effective monitoring and internal controls to detect and prevent such practices, which involve the role of ownership structure.Originality/valueThis paper addresses the effect of CEO overconfidence on earnings quality and provides new evidence on the role of different ownership structure types in shaping this relationship. Additionally, this paper sheds new light on how overconfident CEOs may behave in challenging times.

Has climate change promoted the high-quality development of financial enterprises? Evidence from China

Climate change has become a critical global issue and challenge, with significant implications for financial enterprises as an integral part of economic activities. A thorough analysis of the impact of climate change on the high-quality development of financial enterprises is of great importance for financial sustainability. This paper first conducts an in-depth mathematical analysis of the intrinsic mechanisms through which climate change affects the high-quality development of financial enterprises by establishing a game theory model. Secondly, using data from listed companies for the years 2000–2020, an econometric model is constructed to empirically examine the relationship between climate change and the high-quality development of financial enterprises. The research findings demonstrate that climate change significantly inhibits the high-quality development of financial enterprises, as evidenced by robust results obtained through various methods such as data truncation, variable substitution, and changes in sample periods. Furthermore, this study addresses the endogeneity of the regression model using propensity score matching (PSM), instrumental variable methods, and system generalized method of moments (GMM). Additionally, climate change impacts the high-quality development of financial enterprises through technological innovation. Given the backdrop of climate change, understanding the relationship and logic between climate change and the high-quality development of financial enterprises and discerning the channels and mechanisms through which climate change affects their development are crucial. This research provides a new perspective and expands the research frontier on the high-quality development of financial enterprises, enriching the theoretical foundations in this field.

Does managerial myopia exacerbate firms excessive financialization? Evidence from Malaysia

Purpose This study aims to examine the influence of managerial myopia on the excessive financialization behavior of listed firms on Bursa Malaysia. Design/methodology/approach Through a sample of 313 firms from 2015 to 2021, the author examine whether managerial myopia promotes or inhibits corporate financialization. The author uses ordinary least squares and Logit as the baseline models and addresses potential endogeneity through the dynamic-panel generalized method of moments. The results are also robust to alternative measures of financialization and managerial myopia. Findings The results show a significant positive effect of managerial myopia on the excessive financialization of enterprises. Furthermore, the findings indicate that the impact of managerial myopia on the over-financialization of enterprises is more prominent in periods of low economic policy uncertainty. However, the relationship between excessive financialization and managerial myopia is weakened in the presence of female chief executive officers. Practical implications The empirical results have useful policy implications. First, firms should establish scientific managerial assessment and supervision systems to avoid excessive financial investment behavior by myopic managers caused by assessments that place too much emphasis on short-term performance. Second, regulators and policymakers should encourage firms to appoint women to top management positions, which may inhibit short-sighted financialization behavior. Finally, the regulatory authorities should undertake the necessary measures driving companies to disclose the investment direction of the funds so that shareholders and investors can understand the use direction of the funds in a timely manner, which can effectively prevent the economy “from the real to the virtual” and promote the development of the real economy. Originality/value This paper expands the existing research on corporate financialization behavior and provides a new theoretical basis for the underlying factors of excessive financialization. It studies the influence of corporate financialization from the perspective of short-run managerial actions and deepens the understanding of managerial myopia and companies’ financialization levels.

How do natural resource rents and productive capacity affect carbon emissions? Evidence from developed and developing countries

This study re-examines the determinants of CO2 emissions, considering 36 developing and developed economies from 2000 to 2020. The study uses a new indicator of economic cycles, i.e., the productive capacity index. The panel models also control for the impacts of geopolitical risk, globalisation, renewable energy share, and total natural resource rents. After diagnosing the data for necessary panel diagnostics, the Westerlund cointegration test indicates a significant long-run relationship. In this context, two-step System Generalised Method of Moments (SGMM) estimations demonstrate the positive effects of geopolitical risk, productive capacity index, and natural resource rents on per capita CO2 emissions. In contrast, globalisation and the share of renewable energy reduce CO2 emissions. The Panel-Correlated Standard Errors (PCSE) and the Feasible Generalised Least Squares (FGLS) confirm the long-run reliability of these baseline findings. Policy implications concerning the issue of rising CO2 emissions are also discussed.

FDI, institutional quality and gender employment in Sub-Saharan Africa

With the widening saving-investment gap and the limited domestic financial resources to drive development imperatives in Sub-Saharan Africa (SSA), foreign direct investment (FDI) is considered a viable and sustainably promising option for boosting employment generation and closing gender gaps in employment. This paper provides critical insights into the gender and age-based employment effect of FDI in SSA and the role of institutional quality in shaping the relationship. The two-step generalized method of moments modelling framework was adopted to analyse relevant data of 29 SSA countries over the 2000-2021 period. The results revealed that FDI has a significant employment-enhancing effect irrespective of gender and age considerations. We also find that institutional quality amplifies this effect. Efforts should, therefore, be concentrated on improving institutional quality, the success of which will appeal to foreign investors and attract more foreign investments.

Revisiting natural resources and economic complexity nexus: Does financial development matter in developing countries?

There is a large body of work documenting the non-consensual effects of natural resources on economic complexity. Despite this extensive literature, little is known about the mediating effect of financial development on the above relation. This paper focuses on assessing the effect of financial development on natural resources and economic complexity nexus. The study uses the System Generalized Method of Moments in a sample of one hundred (100) developing countries over the period of 1995–2020. The results show that natural resources reduce economic complexity; translating the curse of natural resources into economic complexity. However, financial development reduces this curse and thus improves the effect of natural resources on economic complexity. The results remain robust to several robustness and sensitivity tests.

Understanding metal bonding.

This theoretical discussion covers several effects of metallic bonding based on a simple formula. It comes from the first steps in the Moment Method for calculating the local electronic structure of a solid (such as at a surface or in a random alloy), and depends on the square root of the total coordination number C of near neighbours. Each atom is covalently bonded to its cluster of near neighbours as a whole. The properties of metals touched on include malleability, crystal structure and phase transitions, vacancy formation energy, surface catalysis, surface reconstruction, graphite stability, and some aspects of the benzene molecule seen as an atomic metal ring. In most of these, the 'saturation' type of curvature of the square root function plays a crucial role. A short historical survey indicates the development of the ideas from Bloch (1929) to recent times.

#367 PROTECT and NefIgArd two-year proteinuria and eGFR outcomes in adults with IgA nephropathy: matching-adjusted indirect comparison

Abstract Background and Aims Immunoglobulin A (IgA) nephropathy is a rare kidney disorder characterized by deposition of IgA in the glomeruli causing progressive loss of kidney function and increased risk of kidney failure. In the absence of a head-to-head trial, this study used unanchored matching-adjusted indirect comparison (MAIC) of clinical trial data to compare two-year efficacy outcomes between Sparsentan in PROTECT and targeted-release formulation (TRF) budesonide plus real-world optimized and stable renin-angiotensin system inhibition (RASi) standard-of-care (SoC) in NefIgArd. Method We conducted an unanchored MAIC using individual patient level data from the PROTECT trial and aggregate data from the NefIgArd trial. Patients in the sparsentan arm of PROTECT were weighted to match key baseline characteristics of patients in the targeted-release formulation (TRF) budesonide + RASi SoC arm of NefIgArd based on publicly accessible, clinically pertinent baseline characteristics and prognostic factors using the method of moments. After weighting, percentage reduction of urine protein-creatinine ratio (UPCR) relative to baseline and two-year eGFR total slope (based on available data, chronic slope estimates are currently not available from NefIgArd) were estimated. A mixed model for repeated measures (MMRM) was used for UPCR relative percentage reduction and a random effect coefficient model for eGFR total slope. A two-tailed z-test with a pooled standard error was conducted for the indirect comparison. Results After assessing PROTECT and NefIgArd cross-trial characteristics on key outcome definitions, inclusion and exclusion criteria, and patient population, the two trials were considered sufficiently similar for unanchored MAIC. After weighting individual patient data from PROTECT, all matched baseline patient characteristics were well-balanced between arms of the two trials. Comparative results showed patients treated with sparsentan in PROTECT (−43.2% relative reduction in UPCR) exhibited a greater mean percentage reduction in proteinuria at two-years compared to TRF budesonide + RASi SoC (−30.7% relative reduction in UPCR), a relative percentage reduction of 18.1% (p = 0.03; Fig. 1A). For eGFR total slope, patients treated with sparsentan exhibited a slower decline in kidney function compared to TRF budesonide + RASi SoC, a difference of 0.54 ml/min/1.73 m2 per year; however, this difference was not statistically significant (p = 0.35; Fig. 1B). Conclusion Aligned to an earlier analysis of percentage reduction in proteinuria at 9-months (−37%, p < 0.0001 favoring sparsentan), our MAIC results show that sparsentan in PROTECT was associated with a greater relative percentage reduction in proteinuria at two-years compared to TRF budesonide plus real-world optimized and stable RASi SoC in NefIgArd. eGFR total slope for sparsentan in PROTECT was comparable to that reported for TRF budesonide plus real-world optimized and stable RASi SoC in NefIgArd. Results comparing chronic slope may provide a better indication of the long-term nephroprotective value of both therapies.

#368 Matching-Adjusted Indirect Comparisons of eGFR slopes in the PROTECT study with UK RaDaR IgA nephropathy population and the control arm of NefIgArd

Abstract Background and Aims Immunoglobulin A nephropathy (IgAN) is a rare kidney disorder characterized by deposition of IgA in the glomeruli leading to an increased risk of kidney failure. The PROTECT clinical trial in IgAN was designed to determine the long-term (approximately 2 year) nephroprotective potential of treatment with sparsentan compared to a blinded active control angiotensin receptor blocker (ARB) irbesartan, titrated to the maximum labelled dose after randomization (achieved in 97% of patients). To understand PROTECT clinical trial results relative to delivery of standard of care (SoC) treatment for IgAN in other clinical settings, this study compared two-year eGFR total slope outcomes between the two arms of PROTECT and delivery of SoC in two populations applying similar eligibility criteria: Method Using individual patient data (IPD) from PROTECT, unanchored matching-adjusted indirect comparisons (MAICs) were performed. Patients in both arms of PROTECT were weighted to match key baseline characteristics of the two comparator populations. Matching was based on published clinical characteristics using the method of moments. After weighting, two-year eGFR total slopes were calculated using random coefficients models. Two-tailed z-tests with pooled standard errors were used for indirect comparison. Results Based on assessment of cross-data source characteristics, populations were found to be sufficiently comparable for unanchored MAIC. After weighting IPD from PROTECT, all matched baseline patient characteristics were well-balanced between data sources. Comparative results showed that patients treated with maximally titrated irbesartan or sparsentan in PROTECT exhibited a slower decline in kidney function compared to SoC delivered in a real-world setting (RaDaR), with differences of: Similar results were observed compared to SoC delivered in a clinical trial (NefIgArd), with differences of: Conclusion Both “maximally tolerated dose of ARB” (as recommended in the KDIGO guideline for IgAN) using irbesartan in PROTECT and sparsentan were associated with significantly slower decline in kidney function compared to real-world SoC treatment for IgAN (RaDaR) and delivery of physician defined, optimized SoC (& placebo) in the context of a clinical trial (NefIgArd). 2-year eGFR slope differences between clinical trials in IgAN need to be considered in the context of what is achieved in current clinical practice. With existing real-world and emerging clinical trial data in IgAN, MAIC is an approach that can be applied to compare outcomes between relevant, sufficiently aligned data sources.

FinTech—A pathway to financial inclusion? Evidence from Southern African Development Community member states

AbstractThe study investigates the effect of FinTech on financial inclusion in Southern African Development Community (SADC) member states over the period 2011–2021, while also looking at the transmission channels. The study adopts a battery of econometric techniques such as ordinary least squares (OLS), the two‐step system generalized method of moments (GMM) and the Driscoll and Kraay covariance estimator. The study finds that FinTech (proxied by digitization) deepens financial inclusion (access to loan) and a decline in the number of bank branches in SADC member states. This is logical since the operations of FinTech are digital. This implies that an attempt to promote financial inclusion by traditional means such as building physical bank structures may be limited, especially in Africa where large swathes of the populace remain unbanked. As expected, FinTech (measured by automated teller machines [ATMs]) increases the number of bank branches in SADC. We also find that mobile cellular subscription, the share of population with access to electricity and Internet access and mean years of schooling are important transmission channels of FinTech to financial inclusion in SADC. In general, the result shows that FinTech enhances and deepens financial inclusion in SADC member states. The research and policy implications are discussed.

MODELING THE IMPACT OF TECHNOLOGICAL DEVELOPMENT AND IMPORTS ON EMPLOYMENT IN RUSSIA

The aim of the paper is to assess the impact of technological development and international trade on the level and structure of employment in Russian regions for the period of 2005-2019. The structure of employment is measured in terms of education level, sectoral specialization, and gender of the employed population. The contribution of the work to the scientific literature is expressed in three aspects. First, we empirically estimate the relationship between imports and employment structure. Second, we attempt to econometrically identify the impact of technological development on several indicators of regional employment. Third, we consider the joint impact of technological development and international trade in the estimated models on employment due to the complementarity of these factors. Based on a systemic generalized method of moments we reveal that technological development has: 1) a positive effect on the share of the employed specializing in mining industry, in the activities of hotels and public catering; 2) a negative impact on the share of the employed with secondary vocational and secondary general education, in agriculture, logistics, health care sectors. In terms of demographic indicators, a similar negative impact of technological development on the employment rate of women and men was obtained. At the same time, with growing total imports in the regions the threat of job losses for the employed with secondary vocational and secondary general education, the urban population, as well as those specializing in healthcare sector increases. Expenditures on fundamental research through the innovative development of regions are a factor in job creation. Technological development and foreign economic openness of the region are associated with greater adaptation of the employed population to competition in international trade and technological development.

The productivity effects of labor market deregulation: evidence from German firms during 2010–2019

Abstract In the early 2000s, the German government introduced the Hartz reforms, which deregulated German labor markets. These reforms were praised internationally as striking a balance between job growth and productivity growth. While macroeconomic research has shown that the reforms have indeed lowered German unemployment, their effects on labor productivity need to be better understood. This paper addresses the impact of temporary agency work (TAW) on German labor productivity during 2010–2019, based on data from a firm-level panel of the German Institute for Employment Research (IAB). It contributes to the rising number of firm-level studies by extending their results in a broader temporal perspective, during which TAW intensities have increased substantially, especially in TAW-using firms. The system generalized method of moment (GMM) estimations based on a firm-level data set with 13,197 observations for the period 2010–2019 show that a robust hump-shaped relationship exists between the extent of TAW and the firms’ labor productivity. We find that the increase in the use of TAWs following the Hartz reforms has, on average, positively contributed to labor productivity growth in German firms. However, the findings also show that if numerical flexibility is increased too much, productivity growth in Germany will suffer. This is particularly the case for several industrial sectors that are important in the German economy. These results are important given recent calls for more labor market flexibility to help firms grow in an increasingly turbulent global economy.

Financing sustainable development goals in Sub‐Saharan Africa: Does international capital flows matter?

AbstractThis study investigates the role of international capital flows in financing the Sustainable Development Goals (SDGs) in Sub‐Saharan Africa (SSA). Using data from 41 SSA countries from 2000 to 2018 and employing the System Generalized Method of Moments (System GMM), the research examines the impact of Foreign Direct Investment (FDI) and remittances on the SDGs across disaggregated levels (economic, social, and environmental sustainability) and the aggregated level (SDGI). The findings underscore the crucial significance of international capital flows as essential financing sources for SSA countries. FDI emerges as a contributor to economic and social sustainability at the disaggregated level, yet it exhibits negative effects on environmental sustainability. Conversely, remittances are shown to positively contribute to economic and social sustainability at the disaggregated level. However, the impact of international capital flows on the aggregate SDGI is found to be insignificantly positive. These results highlight the necessity for policymakers in SSA to devise strategies that maximize the benefits of FDI while addressing its adverse effects on environmental sustainability. Furthermore, they emphasize the importance of strengthening policies aimed at directing remittances towards sustainable investments, thereby advancing the achievement of the SDGs. Governments are urged to prioritize enhancing regulatory capacities in environmental matters through investments in modern technologies and appropriate standards, aiming to strike a balance between environmental protection and economic needs. Additionally, they should prioritize transparency, public participation, and robust enforcement mechanisms. Encouraging environmentally friendly foreign investments and promoting regional and international cooperation are also crucial steps towards effectively managing local environmental challenges.

ASSESSMENT OF PUBLIC DEBT SUSTAINABILITY IN DEVELOPING COUNTRIES, TAKING INTO ACCOUNT THE STRUCTURE OF PUBLIC SPENDING AND INTERTEMPORAL CONSUMER BEHAVIOR

The paper estimates the sustainability of public debt in developing countries from 1990 to 2021 drawing on fiscal response function. The author proposes the modification of the Ramsey model that considers both saving behavior of the population and the structure of government spending in terms of their influence on fiscal policy effects. The findings are tested on the example of developing countries including the Russian Federation. We verify the model's conclusions in two stages. At the first stage, based on indicators of government expenditures’ structure and savings rate, we identify country clusters using the k-means method. At the second stage, for a certain groups of countries, we econometrically estimate the so-called fiscal response function, that is, the reaction of primary budget balance to debt accumulation in the previous period. We make estimates for panel data using a fixed effects model, as well as the generalized method of moments for a dynamic panel. Based on the estimates obtained, for a group of countries similar to Russia in terms of savings rates and the share of productive expenditures in the total share of government expenditures, there is a significant positive coefficient of the reaction of the primary budget balance to changes in public debt in the previous period. Thus, fiscal sustainability is achieved for the selected group of countries at the federal level during the period under review. However, risks at a regional level may, if events develop unfavorably, have a shock effect on the federal budget that requires an additional analysis of regional debt sustainability.

Impact of intellectual property rights on foreign direct investment in Africa

The study investigated the impact of intellectual property rights on foreign direct investment (FDI) in selected African countries (Burkina Faso, Ivory Coast, Nigeria, Cameroon, Mali, Kenya, Burundi, Central African Republic, Rwanda, Senegal, Zimbabwe, and Tanzania). The purpose of the study is to develop property rights policies that encourages FDI in African countries. How FDI is influenced by the combination of trade openness and intellectual property rights was also examined using the same data set and econometric methods such as the dynamic generalized method of moments (GMM), fixed effects, and pooled ordinary least squares (OLS). Panel data ranging from 2005 to 2019 were used for the purposes of this study. A 1% increase in intellectual property rights led to a 22.73% increase in FDI inflows under the dynamic GMM and a 45.55% increase in FDI inflows under the random effects. These results show that intellectual property rights significantly enhanced FDI under the random effects and dynamic GMM. FDI was insignificantly enhanced by intellectual property rights under the pooled OLS and fixed effects methods. A 1% increase in complementarity between intellectual property rights and trade openness (complementarity term) pushed up FDI inflows by 17.78% under the dynamic GMM, whilst a 1% increase in the complementarity term increased FDI inflows by 16.72% under the fixed effects. In other words, dynamic GMM and fixed effects approaches show that the complementarity component significantly improved FDI inflows. The paper recommends implementing the best property rights strategies to improve FDI inflows into African countries. AcknowledgmentThe author appreciates the moral support from the University of South Africa, his employer.

Analyzing the effectiveness of energy aid for driving the transition towards energy decarbonization; Evidence from Asian developing countries

Environmental degradation poses a significant challenge in many developing countries, as they heavily rely on fossil fuels to drive economic activities. The transition towards renewable energy is crucial to mitigate ecological depletion, yet numerous Asian developing countries may struggle to achieve the desired levels of renewable energy adoption due to financial constraints. Foreign aid in the energy sector can expedite this transition process. This study aims to examine the impact of foreign aid on the energy decarbonization transition in 22 Asian developing countries from 2003 to 2022 to analyze its contributions and challenges to promote renewable energy adoption. This paper incorporates the two types of foreign aid in the energy sector (nonrenewable and renewable energy aid) provided by the OECD to developing economies. Utilizing the System-Generalized Method of Moments (Sys-GMM), the findings reveal that energy aid significantly contributes to the transition towards energy decarbonization by providing financial support for embracing renewable energy technologies. Specifically, the analysis indicates that a 1% increase in energy aid leads to approximately 3% enhancement in the decarbonization transition process. Moreover, this study adds to the existing body of knowledge by examining the mediating impact of human capital and financial development as well as the moderating effect of institutional quality and demand for clean fuel. These factors play a pivotal role in energy decarbonization transition by fostering financial development and enhancing human capital through capacity-building initiatives and facilitating the adoption of renewable energy technologies.

Exploring the Role of Digital Economy in Enhanced Green Productivity in China’s Manufacturing Sector: Fresh Evidence for Achieving Sustainable Development Goals

Confronted with challenges such as escalating demand, expanding energy consumption, and emissions, China’s manufacturing sector stands at a pivotal juncture on its path towards sustainable development. Against the backdrop of a new wave of technological revolution and industrial transformation, exploring how the digital economy can foster growth in green total factor productivity (GTFP), particularly amidst technological diversification, holds significant importance for realizing sustainable development objectives. This study employs the system generalized method of moments (System GMM), encompassing 30 provinces in China, to delve deeply into the notable and dynamic correlation between the development index of the digital economy and GTFP. The findings reveal that the advancement of the digital economy significantly influences GTFP, underscoring its direct and enduring impact on green productivity. Key mechanisms through which the digital economy promotes green productivity are identified, including resource optimization, green technological innovation, data-driven decision making, and the transformation of environmentally sustainable behaviors. By bridging gaps in existing literature, this study integrates economic and environmental perspectives, emphasizing the necessity for formulating digital innovation policies aligned with environmental objectives. It provides richer insights into the role of the digital economy in enhancing GTFP, accentuating the potential of digital technologies in driving green transformation. With its holistic approach, this study combines economic efficiency with environmental sustainability, offering crucial guidance for policymakers and industry stakeholders in crafting sustainable development strategies.

Corporate restructuring and firm performance in Vietnam: The moderating role of digital transformation.

In the digital age, firms should continually innovate and adapt to remain competitive and enhance performance. Innovation and adaptation require firms to take a holistic approach to their corporate structuring to ensure efficiency and effectiveness to stay competitive. This study examines how corporate restructuring impacts firm performance in Vietnam. We then investigate the moderating role of digital transformation in the corporate restructuring-firm performance nexus. We use content analysis, with a focus on particular terms, including "digitalization," "big data," "cloud computing," "blockchain," and "information technology" for 11 years, from 2011 to 2021. The frequency index from these keywords is developed to proxy the digital transformation for the Vietnamese listed firms. A final sample includes 118 Vietnamese listed firms with sufficient data for the analysis using the generalized method of moments (GMM) approach. The results indicate that corporate restructuring, including financial, portfolio, and operational restructuring, has a negative effect on firm performance in Vietnam. Digital transformation also negatively affects firm performance. However, corporate restructuring implemented in conjunction with digital transformation improves the performance of Vietnamese listed firms. These findings largely remain unchanged across various robustness analyses.