Ownership Structure, Financial Leverage, And Company Performance: A Study Of Companies On The Vietnamese Securities Exchange

Abstract

This research examines how ownership structure influences financial leverage and corporate performance within ceramic tile firms listed on Vietnam's securities exchanges between 2013 and 2023. Through empirical analysis, this study explores the impacts of state and foreign ownership on critical indicators such as financial leverage and return on assets. The findings reveal that higher state ownership correlates with lower business performance, while higher foreign ownership correlates with improved business performance. Additionally, state ownership is shown to negatively affect financial leverage, whereas foreign ownership positively influences financial leverage. These findings offer empirical evidence supporting the optimization of ownership structures within Vietnam's ceramic tile industry, presenting valuable insights for policymakers and stakeholders. The study underscores the strategic significance of effective ownership planning and governance practices in fostering an environment conducive to state and foreign investments, thereby promoting sustainable growth and enhancing competitive advantage.