THE IMPACT OF CORPORATE GOVERNANCE ON FIRM VALUE: EVIDENCE FROM LISTED TRADE AND SERVICE FIRMS IN VIETNAM’S STOCK EXCHANGE

This study examines the impact of corporate governance (CG) mechanisms on firm value among trade and service companies listed on Vietnam’s stock market during the period 2019–2024. The trade and service sector contributes more than 25% of total market capitalization on the Ho Chi Minh and Hanoi Stock Exchanges. The sector experienced strong volatility in asset values and equity growth due to COVID-19 disruptions and post-pandemic recovery. The study employs a sample of 40 firms, comprising both balanced and unbalanced panel data over six years, which provides a comprehensive overview of the dynamics between governance structures and firm valuation in this sector. Firm value is primarily measured through Tobin’s Q as the main dependent variable, while return on assets (ROA) and return on equity (ROE) are utilized as alternative measures to ensure robustness. The independent variables capture several dimensions of CG, including board size, the proportion of independent directors, CEO duality, gender diversity on the board, and the levels of foreign and institutional ownership. Additionally, a set of financial control variables—such as leverage, firm size, revenue growth, liquidity ratio, and firm age—is incorporated to isolate the governance effect on firm value. The study applies the Generalized Least Squares (GLS) estimation technique for panel data to address potential econometric issues such as heteroskedasticity and autocorrelation.  The results reveal that cash-holding policy is the most significant determinant of firm value, confirming a nonlinear (inverted U-shaped) relationship between liquidity and valuation. Other governance variables, including board size, CEO duality, gender diversity, and ownership structure, show no statistically significant effects. The findings provide new empirical evidence on the interaction between financial policy and corporate governance in Vietnam’s consumer-goods sector and emphasize the importance of maintaining optimal liquidity and effective governance standards to sustain firm value and competitiveness in emerging markets.

• Publication year

  2026

• Venue

  Financial and credit activity problems of theory and practice

• Publication date

  2026-02-28

• Fields of study

  Not labeled

• Identifiers
  DOI 10.55643/fcaptp.1.66.2026.4988
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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