SEMINAR - Impact of corporate governance on M&A: Evidence from Vietnam
In the framework of TRT group, Faculty of Finance, on the afternoon of March 7, 2017, Dr. Dang Huu Man (Head of Science & International Cooperation - UEB) represents the research topic " Impact of corporate governance on M&A: Evidence from Vietnam”.
His article analyzed the influence of corporate governance mechanism on the decision and level of shareholding in target companies of the acquisition companies in Vietnam, one of the typical emerging markets. The image is strongly influenced by the wave of institutional reform. In this study, the authors considered using a sample of 449 M&A deals completed in Vietnam from January 2005 to December 2015. The research results have shown: (1) Acquirers tend to seek higher shareholding in target firms with strong board structure, weak CEO role, and the high shareholding rate of major shareholders; (2) In target firms with the above governance characteristics, the greater the shareholding ratio of the takeovers "during" and "after" the transaction.
The results of the research show that the acquirers tend to characterize the governance mechanisms of the target companies as part of their acquisition plan. In addition, the research results broaden the understanding of the motivations and importance of corporate governance mechanisms of target companies in acquisitions in Vietnam, thereby emphasizing the role of the change in corporate governance mechanism in Vietnam in the face of the trend of increasing use of "foreign" capital sources of companies listed on the Vietnamese stock exchanges