The relationship between managerial ownership and firm performance : Evidence from Ho Chi Minh stock exchange

Abstract

The conflict of interest between managers and shareholders has long sparked many arguments in the academic literature; one of the prevailing topics is the application of managerial ownership as a tool to control to this struggle. Nevertheless, the discrepancies in empirical results are still up to debate among researchers. This paper seeks to extend prior research by investigating the relation between managerial ownership and corporate performance in the context of an emerging market, Vietnam. The hypotheses of the paper are tested by running a simultaneous system of two equations of HOSE firms. Findings imply no association between managerial ownership and firm performance.