Corporate governance mechanism and firm value: evidence from an emerging economy

Abstract

We aim to evaluate the relationship between corporate governance (CG) and firm value (FV) of Vietnamese listed firms. In this study, the System Generalized Method of Moments (SysGMM) regression method is used to assess the association between CG and FV. By examining the sample of 510 companies from 2015 to 2022, the research finding show that the CG index has a positive association with FV. Furthermore, we also examine whether the Covid-19 plays an moderating impact on the relationship between CG mechanism and FV.We also conduct robustness test to confirm our research findings. The research offers additional empirical support for the crucial role that well-functioning CG mechanisms play in augmenting the value of a company. Furthermore, the research enhances the current body of literature by offering novel theoretical and empirical perspectives relevant to nations facing circumstances akin to those of Vietnam in the aftermath of the economic downturn triggered by the COVID-19 pandemic. These findings are helpful for managers, investors, listed companies, and other stakeholders.

Keywords

• G30
• G32
• M40
• Firm value
• firm performance
• corporate governance