Enhancing the role of related parties aims to sharpening corporate governance’s performance in Joint-stock securities firms in Vietnam

Abstract

The restructuring of Vietnamese securities companies towards narrowing down the number of companies aims to maintain a reseanable number of companies compared to the market scale, improve their business performances, financial and managerial capabilities and direct them towards maintaining their functions and roles to the market. In order to fullfil such goals, securities companies need to apply various solutions, including increasing the capability of corporate governance. Corporate governance focuses on dealing with multilateral relationships, not only those inside the company such as between shareholders, employees, Board of Director, Board of Management, but also with external parties having beneficial relationships with the institute: State authorities, business partners, and the community… However, how these relationship are implemented in securities firm, and what drawbacks and reasons for those experiences, remained open questions. Hence, this paper will shed light on these problems by investigating and evaluating working performance of board of directors, board of managers, executive board, and the typical relationship between clients and securities firms as well.