State on Board!

1. Front Matter

   Pages i-xxv

   PDF

2. Introduction

   • Nga Pham, Kok-Boon Oh

   Pages 1-16

3. Changing Role of State-Invested Enterprises in Emerging Markets

   • Nga Pham, Kok-Boon Oh

   Pages 17-47

4. Beyond the Local Economy

   • Nga Pham, Kok-Boon Oh

   Pages 49-64

5. Corporate Governance of State-Invested Enterprises

   • Nga Pham, Kok-Boon Oh

   Pages 65-96

6. The Empirical Research: Design and Methods

   • Nga Pham, Kok-Boon Oh

   Pages 97-132

7. Qualitative Findings: M&A Motivations and Performance Drivers

   • Nga Pham, Kok-Boon Oh

   Pages 133-160

8. Quantitative Findings on the Impacts of State Ownership on M&A Performance

   • Nga Pham, Kok-Boon Oh

   Pages 161-188

9. State Control, Corporate Governance and M&A Performance

   • Nga Pham, Kok-Boon Oh

   Pages 189-220

10. Model Building and Concluding Thoughts

    • Nga Pham, Kok-Boon Oh

    Pages 221-247

Research in this book focuses on the strategic behaviour of the State as a shareholder in businesses, and the implications it has for the other shareholder(s) and business performance. It investigates the institutional characteristics of State-linked and State-owned firms (SIEs & SOEs), in emerging markets using Vietnam as a case study with comparative analysis on China and selected ASEAN countries.
In doing so, the book adopts an evidence-based approach to explain the State’s role as a shareholder in the different aspects of corporate governance, including CEO appointment, board structure and impact of State ownership on business strategy and performance. It highlights the influence of the State as a shareholder by investigating institutional factors consistent with “path dependence” theory, which postulates that the initial and underlying structure of an economy influences its performance. In addition, the book presents empirical evidence of the dynamics of corporate governance arising from interactions between the State and other shareholders, which has not yet been addressed in the literature, and is distinctive in providing new insights from both qualitative and empirical research on how to successfully navigate the emerging market business environments from the perspective of the State as an “owner-participant”. 


Explaining the theoretical constructs in corporate governance in State-invested firms, empirical research methodologies, and results to draw and validate inferences, the book is comprehensive and provides a practical guide for practitioners as well as a reference for academics, undergraduate and postgraduate students. The new theoretical models proposed integrate traditional political-economic and agency theories, which also underpin tertiary business courses and academic research. 

• State as a shareholder of SIEs
• SIEs in Vietnam and China
• SIEs in Emerging Markets
• Emerging markets in global trade and investment
• Vietnam and the global supply chain
• China and the global supply chain
• The State and Business
• State as an owner-participant in business
• Trade War
• Trade War, China, and USA
• Outward Direct Investment in Asia
• Mergers and Acquisitions in Asia

This book is a comprehensive reference full of important theoretical and empirical information for those who wish to gain an understanding of corporate governance of state-owned enterprises (SOEs), especially those with mixed ownership of state capital and private capital. It provides a new evidence-based framework that integrates agency and political economic theories for corporate governance of mixed ownership SOEs. This book adopts a pragmatic approach in its presentation and offers practical models for corporate practitioners, investors and academics to help them appreciate and navigate the intricacies of corporate governance of state ownership in emerging markets. This is an indispensable guide for those planning to or are engaged in emerging market business.  – Professor Iftekhar Hasan, E. Gerald Corrigan Chair in Finance at the Gabelli School of Business, Fordham University, New York, Scientific Advisor at the Bank of Finland, Managing Editor of the Journal of Financial Stability.

“State-owned enterprises (SOEs) in Vietnam remain a major pillar of the Vietnamese economy - the government owns a significant level of assets of listed companies.  This is despite the equitation programmes of the 19990’s and 2000’s.  In recent times there has been a marked reform of SOE governance and performance in Vietnam in its search for economic growth and to achieve its goal of national middle income status by 2030. Such efforts are to be commended and this study supports such steps to reform. It informs the further reforms necessary to move to an even more to a market oriented economy, such as better transparency and disclosure in the governance of SOEs, and improved state ownership activities and state capital management. In SOEs it is important to prevent inefficiencies and misallocation of resources.  The study reviews state-owned enterprises with mixed ownership - partially state-owned combined with private sector investors and uses the benchmarks and compares SOE practices in Vietnamese SOEs with those of Singapore, Malaysia and China.  As a regular provider of corporate governance support in Vietnam, I am heartened to see this very good review of SOEs in Vietnam.  The authors are to be complimented on their efforts.” – Ms. Anne Molyneux, Director of CS International, Vice Chair of the International Corporate Governance Network (ICGN)

"A timely discussion about corporate governance of state-owned companies with mixed ownership in Vietnam. The book offers a good theoretical lens to understand the state shareholder as well as empirical evidence of the impact of state ownership. The book is a good read for both academic and practitioner audience."  -  Mr. Vu Bang, Economic Advisor to the Prime Minister, Chairman of Council of Vietnam Corporate Governance Initiative, Former Chairman of the State Securities Commission of Vietnam

A surprisingly good read for investors and others doing business in Vietnam and other emerging markets. This book – the first of its kind – offers an insightful peek into the corporate culture and governance of listed state-owned enterprises (SOEs), which comprise about one-third of the aggregate market capitalisation of Vietnam’s stock market. Many more SOEs set to be privatized over the decade, and the issue of corporate governance in SOEs is only going to become more important. The authors provide readers with a unique opportunity to gain a better understanding of the motivation and behaviour of the state shareholder, with useful takeaways derived from pragmatic and empirical research. I highly recommend it to anyone currently or considering investing in these companies. – Ms.Thu Nguyen, CFA, Managing Director, Head of Investment in Public Equities and Fixed Income

• Monash Centre for Financial Studies, Monash University, Melbourne, Australia

  Nga Pham

• Director, eGalaxy Solutions, Melbourne, Australia

  Kok-Boon Oh

Nga Pham is a research fellow at the Monash Centre for Financial Studies, Monash University, Australia. She is also a member of the Disclosure and Transparency Committee of the International Corporate Governance Network. Before joining Monash University, Nga was the Dean of the Faculty of Management and Tourism and the Executive Director of La Trobe programs at Hanoi University. She was also a consultant to the International Finance Corporation (the World Bank Group) in corporate governance. She is a CFA Charterholder. 

Kok-Boon Oh has over 40 years of industry experience in corporate finance, international business and academia in the Asia-Pacific Region. He held senior management positions in US and Asian multinational corporations. Kok-Boon has taught at La Trobe Business School. He has co-authored 11 reference books, and over 70 refereed international conference papers and journal articles.

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