The effect of ownership dispersion on capital adequacy at listed commercial banks in Vietnam

Abstract

Due to the importance of bank capital adequacy to the stability of the financial system, there have been a number of previous studies examining the factors affecting the capital adequacy of commercial banks in Vietnam. However, no study has examined the effect of ownership dispersion. Previous international studies have shown that ownership dispersion has a significant influence on the capital adequacy of banks. Using data of thirteen commercial banks listed in Vietnam for the period from 2010 to 2019 (93 observations), this study provides empirical evidence that ownership dispersion has a positive effect on capital adequacy, measured by the capital adequacy ratio CAR, of banks.