Issue: Số 24 - Tháng 11 - 2023Tài chính - Ngân hàng - Bảo hiểm
Impacts of factors related to corporate governance on the cost of equity in listed non-financial enterprises in Vietnamese stock market: Research model and approach
Published: July 25, 2026
Abstract
Corporate governance affects corporate value, and one of the factors expressing corporate value is the cost of equity. This study tested the impact of factors related to corporate governance on the cost of equity. The quality of corporate governance was assessed in terms of the size of the Board of Directors (BOD), the frequency of the BOD’s meetings, the independence of the BOD, the positions of the BOD’s members, information disclosure, the ownership of the BOD’s members, the ownership of major shareholders, and the audit committee. The Capital Asset Pricing Model (CAPM) was used to estimate the cost of equity of a business. In this study, the quantitative research method and the panel data regression model based on S-GMM were employed to explore the relationship between corporate governance and the cost of equity in listed non-financial enterprises in the Vietnamese stock market.
Keywords
corporate capital costscorporate governanceboard of directorsaudit committeenon-financial enterprisesstock market
References
1.
Deloitte (2020). Bản tin Quản trị Công ty thường niên 2020 - Thực thi vai trò giám sát của Hội đồng Quản trị. Sở Giao dịch Chứng khoán TP. Hồ Chí Minh.
2.
IFC (2016). Báo cáo Thẻ điểm Quản trị Công ty Khu vực ASEAN - Nội dung đánh giá các doanh nghiệp niêm yết Việt Nam năm 2015-2016. Truy cập tại: https://www.slideshare.net/nataliej4/bo-co-th-im-qun-tr-cng-ty-khu-vc-asean-ni-dung-nh-gi-cc-doanh-nghip-nim-yt-vit-nam-nm-20152016
3.
Quốc hội (2014). Luật số 68/2014/QH13: Luật Doanh nghiệp, ban hành ngày 26 tháng 11 năm 2014.
4.
Quốc hội (2020). Luật số 59/2020/QH14: Luật Doanh nghiệp, ban hành ngày 17 tháng 6 năm 2020.
5.
Alhares, A. (2020). Corporate governance and cost of capital in OECD countries. International Journal of Accounting & Information Management, 28, 1-21.
6.
Ashbaugh, H., Collins, D. W. & Lafond, R. (2004). Corporate governance and the cost of equity capital. Emory, University of Iowa. Retrieved on January 26, 2006.
7.
Beiner, S., et al. (2006). An Integrated Framework of Corporate Governance and Firm Valuation. European Financial Management, 12, 249-283.
8.
Bernard, S. B., Hasung, J. & Woochan, K. (2006). Does Corporate Governance Predict Firms' Market Values? Evidence from Korea. Journal of Law, Economics, & Organization, 22, 366.
9.
Bozec, R., Dia, M. & Bozec, Y. (2010). Governance–Performance Relationship: A Re-examination Using Technical Efficiency Measures. British Journal of Management, 21, 684-700.
10.
Bozec, Y. & Bozec, R. (2011). Corporate governance quality and the cost of capital. International Journal of Corporate Governance, 2, 217-236.
11.
Brown, L. D. & Caylor, M. L. (2006). Corporate governance and firm valuation. Journal of Accounting and Public Policy, 25, 409-434.
12.
Chen, K. C., Wei, K. & Chen, Z. (2003). Disclosure, corporate governance, and the cost of equity capital: Evidence from Asia's emerging markets. Corporate Governance, and the Cost of Equity Capital: Evidence from Asia's Emerging Markets (June 2003). http://ssrn.com/abstract=422000
13.
Chen, K. C., Chen, Z. & Wei, K. J. (2009a). Legal protection of investors, corporate governance, and the cost of equity capital. Journal of Corporate Finance, 15, 273-289.
14.
Chen, K. C. W., Chen, Z. & Wei, K. C. J. (2009b). Legal protection of investors, corporate governance, and the cost of equity capital. Journal of Corporate Finance, 15, 273-289.
15.
Cheng, C. S. A., Collins, D. & Huang, H. H. (2006). Shareholder rights, financial disclosure and the cost of equity capital. Review of Quantitative Finance and Accounting, 27, 175-204.
16.
Claessens, S. & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging Markets Review, 15, 1-33.
17.
Easton, P. D. (2004). PE ratios, PEG ratios, and estimating the implied expected rate of return on equity capital. The Accounting Review, 79(1), 73-95.
18.
Hassan, S., Kayani, G. M. & Ayub, U. (2018). Corporate Governance and Cost of Equity Capital using DCAPM. Abasyn University Journal of Social Sciences, 11, 1-49.
19.
Jensen, M. C. & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360.
20.
Khan, D. M. Y. (2018). Corporate governance and cost of capital: Evidence from Pakistani listed firms. PhD thesis, University of Glasgow, Scotland, UK.
21.
Moyo, V. & Mache, F. (2018). Inferring the cost of equity: Does the CAPM consistently outperform the income and multiples valuation models? Journal of Applied Business Research (JABR), 34, 519-532.
22.
Owoeye, O. & Pijl, M. V. D. (2016). Corporate governance in Vietnam - its significance and challenges. International Journal of Corporate Governance, 7, 60-77.
23.
Patel, S. A. & Dallas, G. S. (2002). Transparency and disclosure: Overview of methodology and study results - United States. SEIN Corporate Governance & Accountability eJournal, 2022, 1-29.
24.
Pham, P. K., Suchard, J. A. & Zein, J. (2012). Corporate governance and the cost of capital: Evidence from Australian companies. Journal of Applied Corporate Finance, 24, 84-93.
25.
Salehi, M., Arianpoor, A. & Dalwai, T. (2020). Corporate Governance and Cost of Equity: Evidence from Tehran Stock Exchange. Journal of Asian Finance, Economics and Business, 7, 149-158.
26.
Setiany, E., et al. (2017a). Board independence, voluntary disclosure, and the cost of equity capital. Review of Integrative Business and Economics Research, 6, 389.
27.
Sikazwe, C. K. (2014). Is the corporate governance law applicable to Zambian banks and financial institutions adequately promoting good corporate governance? Master thesis, University of Cape Town, South Africa.
28.
Srivastava, V., Das, N. & Pattanayak, J. K. (2019). Impact of corporate governance attributes on cost of equity. Managerial Auditing Journal, 34, 142-161.
29.
Teti, E., et al. (2016). Corporate governance and cost of equity: Empirical evidence from Latin American companies. Corporate Governance, 16(5), 831-848.
30.
Tran Manh Dung & Hong Hanh Ha (2023). Corporate governance disclosure and annual reports quality: An investigation in Vietnam context. Cogent Economics & Finance, 11, 2173125.
31.
Wan, P. (2015). Corporate governance mechanisms and the cost of capital: Evidence from Canadian firms. Master thesis, Concordia University, Canada.
32.
World Bank (2020). Vibrant Vietnam: Forging the Foundation of a High-Income Economy. World Bank.
33.
Zandi, G., et al. (2022). Relationship between corporate governance and cost of equity capital. Polish Journal of Management Studies, 26, 386-406.
