The impact of ownership structure on corporate performance – examining the mediating role of corporate governance

Abstract

This study investigates the relationship between ownership structure (including institutional ownership, foreign ownership, and board ownership) and firm performance in listed companies on stock exchanges in Vietnam. The study also clarifies the mediating role of governance factors such as board size, board independence, CEO gender, and CEO duality on the relationship between ownership structure and firm performance. Research data is collected from financial statements and management reports of companies listed on HoSE and HNX in the period 2007-2021, with 195 companies, creating 1,850 firm-year observations. The results of the study show that the impact of foreign ownership and institutional ownership on performance exists in both linear and non-linear forms. The impact of board ownership has a quadratic function. The study also found that the governance factors of board size and independence play a positive mediating role. The mediating effect through duality of positions is relatively weak. The findings from this study contribute new insights into the impact of ownership and corporate governance factors on corporate performance, which is complex and difficult to predict. Practical implications help improve the performance of listed companies and promote the sustainable development of the Vietnamese stock market through appropriate governance adjustments.