The Influence of Ownership Structure on Bank Profitability: A Case Study of Vietnamese Commercial Banks
Year: 2025
Type: article
Abstract: ABSTRACT : This study analyzes the impact of ownership structure on the profitability of 29 commercial banks in Vietnam during the period from 2012 to 2023. The measurement variables include the ownership stakes of state investors, foreign investors, and private investors to evaluate the role of ownership structure. The profitability of the banks is assessed through three indicators: the Net Interest Margin (NIM), Return on Assets (ROA), and Return on Equity (ROE). The study employs various statistical regression methods, including Pooled Ordinary Least Squares (Pooled OLS), Fixed Effects Model (FEM), and Random Effects Model (REM). After considering the limitations of these models, the Feasible Generalized Least Squares (FGLS) method is applied to provide a more comprehensive discussion of the research results. The empirical findings indicate that state ownership negatively affects the profitability of commercial banks in Vietnam, whereas foreign ownership and private ownership exert a positive influence. These findings reflect the divergent roles of different ownership types and provide a practical basis for constructing and adjusting governance policies and developing the commercial banking system within the context of Vietnam.
Authors: Hang Thi Thu Bui, Yen Thi Hai Nguyen, Hung Thanh Pham, Ngoc Thi Bich Nguyen, Trang Thi Minh Ho
Institution: Tay Nguyen University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W6893221547
FWCI:
Cites:
Cited by:
Related to: