Residual government ownership and corporate investment efficiency in privatised firms: evidence from a transition country

Abstract

This paper delves into the link between residual government ownership and investment efficiency in privatised firms in a transitional economy. The study uses a data set covering firms listed on the Ho Chi Minh City stock exchange, Vietnam, over the period from 2007 to 2015. It is found that firms with higher residual government ownership are associated with lower levels of investment efficiency. The finding suggests that government ownership is less beneficial than private ownership in privatised firms. The paper has important implications for policymakers in supporting privatisation policy and in designing a framework to promote better corporate governance in privatised firms after privatisation.