Impact of Ownership Structure on Firm Performance of Construction and Real Estate Enterprises: Evidence from Vietnam

Abstract

This paper investigates the impact of ownership structure on firm performance of construction and real estate enterprises listed on the Vietnamese Stock Exchange from 2010 to 2019. The article uses the method of ordinary least square (OLS), then we choose between fixed effect model (FEM), random effect model (REM), and generalized least squares (GLS) method to analyze the emprical results. The results show that foreign ownership has a positive impact on firm performance (measured by ROE, ROA, and TobinQ). State ownership has a negative impact on TobinQ. A higher level of leverage leads to an increase in TobinQ, but it causes a decrease in ROE. In addition, enterprise age may not improve firm performance. Based on research results, we suggest some management implications to help investors and business administrators make better decisions.