Abstract
This study examines the impact of institutional ownership on the financial performance of listed companies in Vietnam. Vietnam’s stock market has experienced robust growth in institutional ownership, with a 92.15% increase in institutional investors between 2015 and 2021. This trend has been further reinforced by recent regulatory reforms through 2025, including Decree No. 245/2025/ND-CP, which abolished company-specific lower foreign ownership limits, as well as FTSE Russell’s announcement on October 7, 2025 reclassifies Vietnam from Frontier to Secondary Emerging market status effective September 21, 2026. Using a panel dataset of 689 non-financial firms listed on HOSE and HNX from 2010–2022, the study applies OLS regression with robust standard errors and year-industry fixed effects. Control variables include leverage, firm size, and firm age. Grounded in agency theory, supplemented by resource dependence theory and the monitoring hypothesis, the findings show that institutional ownership positively and significantly influences ROA and ROE. Domestic institutional investors exert a stronger positive effect than foreign ones, due to historical foreign ownership restrictions and short-term foreign strategies. Foreign ownership in the 10%–20% range shows significant positive impact, indicating moderate levels enhance governance without disruption. The results emphasize the need for continued regulatory reforms to promote balanced institutional participation and optimize ownership structures for improved financial performance in Vietnam’s emerging market.
Keywords: corporate governance, financial performance, institutional ownership, listed companies, regulatory reform, agency theory, Vietnam.
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Ban biên tập Tạp chí Kinh tế & Quản trị Kinh doanh
Phòng 514, Nhà điều hành, trường Đại học Kinh tế & Quản trị Kinh doanh
Địa chỉ: Phường Tân Thịnh, thành phố Thái Nguyên
Email: tapchikt-qtkd@tueba.edu.vn; Điện thoại: 0208.3903373
