Impact of Residual State Ownership on Privatised Firm Performance: Evidence from Vietnamese Listed Firms

The thesis results indicate that state ownership should not be considered merely a source of inefficiency. Rather, up to a moderate level it impacts positively on privatised firm performance via its “monitoring” effect. However, when state ownership becomes dominant, its marginal impact is detrimental to the performance of privatised firms via its “expropriation” effect. Also, the performance of privatised firms could be enhanced by transferring the management of state-owned enterprises to an independent specialised monitoring body and hardening of soft budget constraint via tightening easy credit.