An Empirical Study of SOE Corporate Governance Attributes for Emerging Markets

This book investigates the institutional characteristics of state-linked firms in Vietnam to draw lessons for investors/MNCs targeting Vietnam and other emerging markets in the region. Vietnam and many other ASEAN countries have gone through a period of privatization and equitization of wholly controlled SOEs, with the State retaining partial ownership in many privatized businesses. This book explains the dynamic relationships between the State, BODs, shareholders, and regulators and their influence on corporate governance and SOE performance. This book differs from other publications in that it extrapolates the findings from our study to a broader context on how the defined internal mechanisms implicate the local economy and global supply chains/markets.

This book investigates robust theoretical foundations, and rigorous applied empirical research underpin the role of the State in SOEs. It differs from other studies in terms of qualitative and empirical research to provide the contextual setting to elucidate how to successfully navigate emerging market business with the State as an ＂owner-participant.＂ This book explains the theoretical constructs of corporate governance in SOEs, applies empirical research methodologies, and draws results to validate inferences to (1) investigate the link between the board of directors and ownership attributes and agency cost levels using Vietnamese listed firms for the period from 2006 to 2013, (2) evaluate the effectiveness of State’s corporate initiatives and monitoring through its sovereign wealth fund known as the State Capital Investment Corporation (SCIC), and (3) infer and explain the motivation of the State as a shareholder.

This book takes cognizance of Vietnam’s idiosyncratic institutional (using its sovereign wealth fund as an investment vehicle and management proxy), economic, regulatory, and corporate environments and the realities for developing an effective and sustainable business model, vis-à-vis the ownership structure, board of directors’ composition and corporate governance, for better business performance. While the focus is on Vietnam, the content is also relevant to the role of the State in other emerging markets as a player in shaping the business strategy, model, and direction of SOEs.

Dr Giang Hoang has worked extensively in Vietnam’s investment banking industry and education sector. She has over 18 years of experience in financial education, research, and advisory services in various areas of finance, such as derivatives, investment and portfolio management, international finance, and corporate governance.

Dr. Hoang was also the Deputy Dean of the Faculty of Management and Tourism at Hanoi University and the Executive Director of the Joint Education Program between La Trobe University (Australia) and Hanoi University (Vietnam). She was influential in developing key partnerships for various universities in Vietnam and instrumental in obtaining research grants from international donors. As an academic, she has taught extensively in Australia, Vietnam, Singapore, and Italy. Other previous roles have also been as an Equity Analyst of a securities company and Finance Specialist of the World-Bank financed projects.

Through research, teaching, and experience running her investment fund, Dr. Hoang has built expertise in corporate governance, which opened doors for her to become a consultant in the field of corporate governance for many listed entities. She is a member of the Australian Investment Association and Vietnamese Investment Institute and an angel investor of several digital asset projects in the United States focusing on decentralisation of governance and web3.

Dr Kok-Boon Oh has industry experience working with the US and Asian MNCs in senior management positions overseeing their global business operations. Dr. Oh has worked in roles in these organisations as directors, CEOs and as a C-suite officers in corporate finance, international business, and risk management for over 40 years.

Dr. Oh was the Acting/Deputy Head of the Graduate School of Management at La Trobe University in Melbourne, Australia. He was also the MBA Program Director responsible for the programs offered in both Australia and internationally. He conducted research and taught accounting, finance, enterprise risk management, cybersecurity, technology and innovation management and international business at La Trobe University. As a senior academic, he travelled extensively to oversee and deliver business and management programs in China, Mongolia, and Vietnam for over 20 years. He was also responsible for supervising PhD candidates and, developing and delivering executive education programs to Australian and international audiences.

As a senior member of MNCs and academic institutions, Dr. Oh has been involved in governance, sitting on committees to formulate, implement and supervise corporate governance policies and practices. Dr. Oh is an Australia Certified Practising Accountant and Malaysian Chartered Accountant, and Director of eGalaxy Research. He is also a member of the Academic Board of Texila College in Melbourne.