FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS GRADUATION THESIS Major: International Finance THE IMPACT OF FOREIGN OWNERSHIP ON CAPITAL STRUCTURE OF FIRMS LISTED ON HO CHI MINH STOCK EXCHANGE Author: TRUONG THI MINH NHAN Student ID: 1001036144 Class: K49CLC2 – C3 Supervisor: Tran Quoc Trung Ho Chi Minh City, May 2014 TABLE OF CONTENT List of abbreviation List of tables and figures INTRODUCTION CHAPTER 1: LITERATURE REVIEW 1.1 Capital Structure .4 1.1.1 Relevant theories .4 1.2 Foreign ownership 15 1.2.1 Definition 14 1.2.2 Legal framework of foreign ownership in Vietnam 16 1.3 The impact of foreign ownership on capital structure .18 CHAPTER 2: THE IMPACT OF FOREIGN OWNERSHIP ON CAPITAL STRUCTURE OF FIRMS LISTED ON HO CHI MINH STOCK EXCHANGE 21 2.1 Research model 21 2.2 Variable description 24 2.3 Data collection 26 2.4 Research Findings 26 2.4.1 Descriptive statistics 26 2.4.2 Correlation analysis .28 2.4.3 The regression results 30 2.5 Discussion 33 CHAPTER 3: RECOMMENDATIONS FOR COMPANIES LISTED ON HOSE AND THE GOVERNMENT AND SUGGESTIONS FOR FURTHER RESEARCH 36 3.1 Recommendations for companies 36 3.1.1 Getting the optimal capital structure .36 3.1.2 Reducing the risk of bankruptcy 39 3.1.3 Improving corporate governance 3.2 Recommendations for the government and competent authorities 47 3.2.1 Attracting foreign investment into Vietnam Stock Market 47 3.2.3 Regulating corporate governance 56 3.4 Limitations and suggestions for advancement 57 CONCLUSION 59 REFERENCE APPENDIX LIST OF ABBREVIATION No Abbreviation Explanation BOD Board of Directors DATC Debt and Assets Trading Corporation ETF Exchange-Traded Fund FDI Foreign Direct Investment FEM Fixed Effects Model FII Foreign Indirect Investment HOSE Ho Chi Minh Stock Exchange OECD OLS Ordinary Least Square 10 REM Random Effects Model 11 UPCOM Unlisted Public Company Market 12 WTO World Trade Organization Organization for Economic Co-operation and Development LIST OF TABLES AND FIGURES No Tables and Figure Figure 1.1: The Modigliani and Miller theorem – Proposition I and II Figure 1.2: The static trade off theory of capital structure Table 1.1: Differences between the two main kinds of foreign investment Page 10 15 Table 2.1: Descriptive Statistics 28 Table 2.2: The correlation matrix 29 Table 2.4: Regression results 31 INTRODUCTION The necessity for the study In the world of increasing globalization, foreign investment is a trend for all companies over the world Being a strongly emerging developing economy, Vietnam has become an attractive market for investment inflows As a matter of fact, there has been a growing overseas cash flow into the country In recent years, foreign investment in the industrial sector in Vietnam has established the development and promoting economic growth In the few months between 2012 and early 2013, the total amount of foreign net purchase on the secondary market increased by nearly 20 times and the sector with overseas inflows owns the most dynamic growth rate Moreover, to be keep pace with the borderless trade as well as pave the way for foreign funds into domestic companies, Vietnam government has enacted The Law of Foreign Investment in Vietnam since 1987 Up to now, the law has been amended many times and the latest amendment is in the beginning of 2014 to extend the maximum rate of foreign ownership in domestic commercial bank From this, it is indicated that foreign investment not only contributes to the process of integration with the world economy of Vietnam but also plays a very important role for our country's economy In the other hand, most of the Vietnam enterprises previously are owned by the state and dependent on the funding from the government However, in the context of economic reform from the mid 80’s onwards, a number of enterprises were privatized and rapidly developed with the diversity in ownership structure such as private ownership, foreign ownership and joint-stock companies That is reflected by strong economic growth, the participation in the International Trade Organization (WTO) and the establishment of Vietnam stock exchange market in 2000 The prosperity of corporations depends greatly on the access to appropriate source of capital such as debt or equity, as well as determining the optimal capital structure Upon the advancement, Vietnam though is in lack of the diversity of financial channels and empirical researches which are consistent with the reality of capital structure so that they can support enterprises to make appropriate financing decisions From the above reasons, it is essential to an empirical research on the impact of foreign ownership on capital structure in firms listed on Ho Chi Minh Stock Exchange The research purposes The purpose of this research is to study the impact of foreign ownership on the capital structure of firms listed on Ho Chi Minh Stock Exchange The research object and scope Object of the study: This study focuses on investigating the influence of foreign ownership over financial leverage Thus, the main objects of the study are rate of foreign ownership and leverage However, in order to reduce the bias of other factors on the leverage, we utilize four more variables which are hypothesized to have relationship with leverage Scope of the study: This study is conducted based on a panel data which is collected from 249 firms with foreign ownership listed on Ho Chi Minh Stock Exchange for the period from 2009 to 2013 The research methods In order to achieve the objective of this study, the author has applied quantitative method approach Specifically, a panel data is created from the data of 249 public firms listed in HOSE covering the period from 2009 to 2013 which is collected from financial statements as well as the statistics of shareholders from a recognized website A regression model is designed Both Pooled Ordinary Least Square and Panel data estimation method including fixed effects and random effects methods are applied with the support of Eviews software version 6.0 Then, Hausman testing is used to check the effectiveness between the two panel data methods The structure of the research Besides the introduction, conclusion and references, the main content of the research is structured with three chapters as follows: Chapter 1: Literature review Chapter 2: The impact of foreign ownership on capital structure of firms listed on Ho Chi Minh Stock Exchange Chapter 3: Recommendations for companies listed on HOSE and the Government and suggestions for further research I would like to express my most sincere thanks to my supervisor, Master.Tran Quoc Trung, who wholeheartedly gave me useful pieces of advice and solutions to my concerns over the period of my completion of this research Meanwhile, I would like to show my great gratitude to the lecturers at Foreign Trade University, Ho Chi Minh City Campus, who enthusiastically deliver the knowledge background and offer the opportunity to this research Due to the short duration for doing research and my limited ability, the research inevitably contains many shortcomings despite my every effort Therefore, I would be greatly grateful if I could receive valuable comments from the supervisor and instructors for a better and more practical content Ho Chi Minh City,10th May, 2014 Author Truong Thi Minh Nhan CHAPTER 1: LITERATURE REVIEW 1.1 Capital Structure To maximize the shareholder’s value, each company has their own financing decision to choose between borrowing and equity In this very first section, it reviews the theories of capital structure as well as definition of foreign ownership employed in the study Also, the summary of relevant research on the effects of capital structure on capital structure is provided in the end of Chapter 1.1.1 Relevant theories In general, there are many ways for a firm generating fund for its operation as well as business projects Concerning the source, financing activities are divided into internal funds and external channels When the chief financial officer considers raising capital for company, the first source is internal source which comes from retained earnings That is profit after tax of the corporation accumulated from year to year Thus, utilizing the available capital is advantageous because of its low cost The company does not bear the interest for creditors or pay out the dividend for shareholders Regarding the external sources, borrowing and equity are two main ways for financing The former means loans from outside while the other refers to sell shares including common stocks or preferred stocks to get investment for the company However, each type of source has its own benefit and risk As borrowing money, the company commits to pay an amount of interest periodically and make principle repayment at maturity However, the paid interest is tax deductible, resulting in lower cost of capital Lenders get their fixed return and have no additional income if the project is successful and money – making In other hand, there are some risks such as lower liquidity ratios and higher solvency indexes That is disadvantageous for the firm due to higher cost of borrowing In addition, the amount of borrowings is in priority to pay back in circumstance of bankruptcy Notwithstanding, companies have limited liability It means that the promise to repay the principle is not always kept If the firm is in deep water, it is allowed to default on debt and transfer their assets to the creditors In addition, there exists a kind of debt that can be converted into equity called convertible bond A convertible bond provides its owner the option to change to a fixed number of shares When company’s share price increases significantly, the bond may be converted to get profit Conversely as the stock price falls, there is no obligation to turn the bond into equity Owing to that privilege the convertible bond is sold at a higher price or enjoys a lower interest rate than ordinary ones As a matter of fact, a company chooses to issue stocks for fundraising means selling its ownership Unlike debt, there are no principle and no interest while dividend is paid out according to corporate policy, business profitability and type of share Yet, paid dividend is not allowed to deduct from taxable income since it is calculated as an after tax payment As known, the firm’s net worth is a sum of common stocks and preferred stocks Although preferred equity is considered to be less important than the other, there are certain particular situations in which it is a useful financing method such as merging with other corporation Like debt, there is a predetermined payment of return regardless of the annual company bottom line and discretion of managers The company has rights not to pay the dividend but no dividend on common shares is paid until that on preferred stocks is settled If the firm goes bankruptcy, the preferred stock holders take priority over the common share holder but queue after the lenders Moreover, it is not allowed to deduct dividends on preferred share from taxable income, which is one of the dominant deterrents for industrial companies to issue preferred (Brealey and Richard, 2001) Other distinguishing character of preferred stock is limited voting rights This is favorable method for company to financing without distributing control with new stake holders By and large, the combination between debt and equity that a company utilizes to raise capital for their operation is capital structure The financial manager is responsible for mitigating the cost of capital and maximizing the value of company by choosing a proper capital structure However, principle–agent problem is worthy to consider The conflict interest between owners and managers often has impact on the financing decision Also, the 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 SRC SRF SRF SRF SRF SRF SSC SSC SSC SSC SSC SSI SSI SSI SSI SSI ST8 ST8 ST8 ST8 ST8 STB STB STB STB STB STG STG STG STG STG STT STT STT STT STT 0.438 0.537 0.479 0.555 0.575 0.5 0.25 0.201 0.273 0.366 0.356 0.319 0.371 0.208 0.339 0.309 0.215 0.253 0.159 0.158 0.167 0.896 0.904 0.897 0.91 0.894 0.355 0.3 0.226 0.241 0.276 0.35 0.245 0.218 0.321 0.296 0.0463 0.0131 0.012 0.0114 0.0235 0.2253 0.38 0.367 0.2477 0.2753 0.261 0.4502 0.4671 0.4824 0.49 0.4895 0.49 0.49 0.49 0.49 0.4901 0.3 0.2998 0.2301 0.0544 0.0475 0.0015 0.0016 0.0016 0.0012 0 0.0369 0.0698 0.0907 0.1236 0.0686 0.0705 0.0806 0.055 0.0538 0.2516 0.2021 0.2006 0.1843 0.1727 0.1266 0.0868 0.0103 0.0641 0.0533 0.2127 0.1378 0.1019 0.1489 0.1491 0.0194 0.0146 0.0141 0.0068 0.0142 0.1879 0.2091 0.1449 0.1495 0.1349 0.0644 0.0727 0.0245 -0.1949 -0.1998 -0.0974 0.0158 0.3032 0.1524 0.093 -0.1339 0.2772 0.2057 0.2322 0.1973 0.3134 -0.0127 0.3405 -0.4359 0.0015 -0.1441 0.0034 0.0289 -0.1296 -0.2012 0.4061 1.008 0.689 0.502 0.112 0.02 -0.258 0.3826 -0.0432 -0.0199 0.0888 -0.0382 0.1224 -0.1636 0.0927 -0.0735 0.218 0.06 0.16 0.12 0.11 0.099 0.226 0.218 0.223 0.161 0.207 0.023 0.02 0.025 0.018 0.018 0.369 0.421 0.203 0.205 0.16 0.024 0.021 0.026 0.034 0.033 0.123 0.25 0.22 0.183 0.144 0.521 0.49 0.487 0.476 0.486 0.25 0.231 0.112 0.133 0.139 0.221 0.1 0.205 0.209 0.155 0.004 0.159 0.236 0.346 0.045 0.175 0.232 0.268 0.264 0.28 0.254 0.232 0.254 0.28 0.267 0.247 0.169 0.174 0.245 0.245 0.244 0.203 0.236 0.312 0.018 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 SVC SVC SVC SVC SVC SVI SVI SVI SVI SVI SZL SZL SZL SZL SZL TAC TAC TAC TAC TAC TBC TBC TBC TBC TBC TCL TCL TCL TCL TCL TCM TCM TCM TCM TCM TCR 0.542 0.627 0.671 0.668 0.673 0.649 0.725 0.633 0.652 0.609 0.404 0.388 0.523 0.527 0.551 0.547 0.608 0.658 0.622 0.665 0.091 0.1 0.048 0.039 0.032 0.306 0.387 0.486 0.494 0.37 0.671 0.643 0.645 0.68 0.627 0.494 0.0855 0.0858 0.0841 0.0502 0.0455 0 0.0307 0.0883 0.0166 0.0156 0.0235 0.0368 0.058 0.0981 0.0365 0.0352 0.0356 0.0337 0.0189 0.0198 0.0045 0.0046 0.0058 0.0441 0.106 0.1308 0.1735 0.3188 0.4715 0.4865 0.4639 0.49 0.3934 0.0456 0.0346 0.0176 0.0165 0.0149 0.1402 0.1672 0.1485 0.1219 0.116 0.0613 0.0711 0.0512 0.0441 0.0354 0.0346 0.1102 0.0255 0.0628 0.0592 0.1513 0.0623 0.0885 0.1454 0.1631 0.2334 0.1816 0.1209 0.08 0.1064 0.03 0.1103 0.0565 -0.01 0.0625 0.0036 0.454 0.3555 0.4748 -0.1204 0.2158 0.023 0.3954 0.2106 0.2257 0.178 -0.6595 0.6744 0.0051 -0.009 0.1875 -0.1126 0.2401 0.3608 -0.0904 0.0644 -0.1457 -0.2988 0.199 0.4502 0.1745 0.503 0.5086 0.1659 0.0784 -0.2743 0.1005 0.6808 0.1596 0.0404 0.1186 -0.1434 0.226 0.274 0.231 0.25 0.279 0.219 0.194 0.193 0.398 0.263 0.259 0.245 0.171 0.191 0.169 0.408 0.277 0.253 0.234 0.17 0.611 0.681 0.719 0.611 0.527 0.294 0.322 0.441 0.397 0.405 0.556 0.391 0.342 0.345 0.35 0.442 0.205 0.177 0.31 0.24 0.278 0.099 0.091 0.084 0.08 0.039 0.143 0.21 0.265 0.201 0.176 0.158 0.159 0.117 0.226 0.236 0.083 0.127 0.086 0.082 0.117 0.174 0.238 0.247 0.242 0.23 0.219 0.128 0.042 0.076 0.079 0.228 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 TCR TCR TCR TCR TDC TDC TDC TDC TDC TDH TDH TDH TDH TDH TDW TDW TDW TDW TDW THG THG THG THG THG TIE TIE TIE TIE TIE TIX TIX TIX TIX TIX TLG TLG 0.427 0.555 0.585 0.631 0.721 0.792 0.533 0.643 0.714 0.292 0.363 0.375 0.361 0.359 0.611 0.621 0.644 0.613 0.604 0.725 0.65 0.638 0.601 0.557 0.236 0.233 0.192 0.184 0.274 0.576 0.578 0.502 0.442 0.415 0.372 0.458 0.4055 0.4516 0.49 0.49 0.0112 0.0118 0.0108 0.0101 0.4011 0.3332 0.2915 0.2732 0.3191 0.3012 0.3114 0.3174 0.1615 0.03 0.0299 0.0092 0.0017 0.0673 0.0027 0.0025 0.0123 0.0113 0.1722 0.2073 0.2193 0.2257 0.2232 0.0328 0.0533 0.0547 0.0599 0.0021 -0.0358 0.0756 0.0692 0.0863 0.0518 0.0367 0.1802 0.1193 0.0194 0.0146 0.0097 0.0394 0.0666 0.0667 0.0619 0.0653 0.1165 0.1013 0.0468 0.044 0.0354 0.1535 0.1295 0.1052 0.0996 0.167 0.0632 0.0684 0.1083 0.0495 0.0644 0.1027 0.105 0.2929 0.1933 0.1616 0.1574 0.0419 0.1266 1.9172 -0.0394 -0.0571 -0.1971 0.1577 -0.0436 -0.6249 1.0481 0.1681 0.5179 0.1582 0.1556 0.1798 1.6401 0.0845 0.0397 0.1214 -0.1157 0.0081 0.1009 0.1898 -0.1884 -0.028 0.0049 0.1813 0.2189 -0.5321 -0.4125 0.2907 0.3006 0.414 0.53 0.499 0.444 0.064 0.049 0.047 0.071 0.068 0.109 0.106 0.1 0.086 0.08 0.724 0.628 0.696 0.672 0.623 0.344 0.335 0.29 0.281 0.295 0.109 0.178 0.053 0.057 0.066 0.342 0.301 0.209 0.222 0.1 0.361 0.333 0.156 0.183 0.298 0.242 0.246 0.246 0.241 0.25 0.163 0.242 0.281 0.112 0.182 0.214 0.207 0.152 0.214 0.209 0.05 0.226 0.084 0.24 0.179 0.062 0.09 0 0.005 0.195 0.212 0.256 0.269 0.233 0.354 0.241 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 TLG TLG TLG TLH TLH TLH TLH TLH TMP TMP TMP TMP TMP TMS TMS TMS TMS TMS TMT TMT TMT TMT TMT TNA TNA TNA TNA TNA TNC TNC TNC TNC TNC TPC TPC TPC 0.497 0.427 0.377 0.507 0.541 0.499 0.507 0.505 0.429 0.409 0.387 0.365 0.332 0.257 0.332 0.256 0.238 0.243 0.68 0.48 0.466 0.458 0.371 0.639 0.63 0.657 0.622 0.63 0.092 0.116 0.102 0.132 0.092 0.109 0.105 0.651 0.0494 0.0269 0.185 0.0076 0.0072 0.0108 0.0086 0.0049 0.0044 0.004 0.0006 0.0005 0.4124 0.3802 0.3928 0.392 0.3993 0.0328 0.0117 0.0128 0.0183 0.0213 0.0164 0.0163 0.0166 0.0549 0.0239 0.0119 0.0167 0.0191 0.0153 0.0556 0.0336 0.0324 0.0946 0.1047 0.1182 0.1455 0.0333 0.0155 0.0269 0.0639 0.1133 0.0168 0.0564 0.105 0.107 0.1093 0.0866 0.0712 0.1198 0.1219 0.0894 0.0489 0.0023 0.0003 0.0079 0.0765 0.1311 0.063 0.057 0.0509 0.1107 0.1798 0.221 0.1944 0.094 0.181 0.1035 0.055 0.2831 0.1655 0.1561 0.8735 0.2812 -0.0132 -0.0476 0.0822 0.2887 -0.3961 0.4022 0.3795 -0.0382 -0.0263 0.3682 0.1307 0.4577 0.0375 -0.1447 -0.2447 -0.3884 -0.4469 0.0291 -0.2093 0.5317 0.2412 0.1301 0.3186 -0.056 0.0557 -0.2014 0.3209 -0.2566 -0.1005 0.0901 0.6316 0.261 0.257 0.211 0.101 0.111 0.114 0.132 0.193 0.705 0.712 0.63 0.624 0.558 0.382 0.409 0.395 0.297 0.335 0.108 0.324 0.397 0.432 0.369 0.092 0.013 0.071 0.072 0.068 0.391 0.33 0.304 0.262 0.293 0.139 0.113 0.035 0.235 0.262 0.296 0.165 0.221 0.246 0.189 0.152 0.175 0.245 0.25 0.24 0.232 0.149 0.185 0.131 0.135 0.123 0.156 0.063 0.327 0.218 0.171 0.25 0.193 0.234 0.252 0.14 0.142 0.126 0.115 0.154 0.078 0.052 0.18 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 TPC TPC TRA TRA TRA TRA TRA TRC TRC TRC TRC TRC TS4 TS4 TS4 TS4 TS4 TSC TSC TSC TSC TSC TTP TTP TTP TTP TTP TV1 TV1 TV1 TV1 TV1 UDC UDC UDC UDC 0.474 0.522 0.35 0.397 0.481 0.471 0.308 0.206 0.273 0.234 0.114 0.274 0.529 0.559 0.657 0.73 0.711 0.793 0.774 0.752 0.699 0.511 0.146 0.238 0.193 0.21 0.485 0.79 0.743 0.796 0.84 0.843 0.582 0.661 0.722 0.729 0.0181 0.0175 0.1286 0.3585 0.3625 0.4471 0.4637 0.2613 0.328 0.3163 0.3028 0.3089 0.182 0.1257 0.1261 0.1225 0.0978 0.0539 0.0229 0.0318 0.0202 0.0426 0.3533 0.3549 0.156 0.1298 0.0651 0.0012 0.0016 0.0027 0.003 0.0047 0.0048 0.0029 0.0373 0.0368 0.1334 0.1345 0.1251 0.1288 0.1453 0.225 0.2975 0.4078 0.2319 0.1345 0.0878 0.0582 0.0402 0.0184 0.0146 0.0322 0.0166 0.0342 -0.0739 0.0072 0.1642 0.1432 0.1005 0.0619 0.0433 0.0502 0.0458 0.0327 0.0213 0.0217 0.0143 0.0175 0.0072 0.0037 -0.1657 0.1491 -0.0425 0.1509 0.2361 0.3179 0.2011 -0.1981 0.7213 0.5769 -0.2406 -0.2604 0.6068 0.3104 0.7077 -0.085 0.1852 -0.0392 -0.0118 0.0468 -0.0891 -0.7136 0.0031 0.2776 0.1769 -0.0498 0.007 0.0796 0.0088 0.0193 -0.0392 0.147 -0.2105 0.2955 -0.0304 -0.1046 0.076 0.067 0.147 0.148 0.221 0.226 0.244 0.409 0.318 0.238 0.237 0.315 0.618 0.524 0.434 0.312 0.248 0.143 0.15 0.231 0.341 0.424 0.232 0.202 0.241 0.236 0.225 0.101 0.119 0.303 0.509 0.497 0.258 0.263 0.259 0.277 0.097 0.162 0.266 0.275 0.27 0.263 0.259 0.053 0.1 0.093 0.118 0.136 0.099 0.342 0.29 0.248 0.033 0.175 0.152 0.141 -0.049 1.028 0.138 0.137 0.138 0.266 0.255 0.23 0.25 0.259 0.234 0.271 0.27 0.241 0.219 0.2 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 UDC UIC UIC UIC UIC UIC VCB VCB VCB VCB VCB VCF VCF VCF VCF VCF VFG VFG VFG VFG VFG VHC VHC VHC VHC VHC VHG VHG VHG VHG VHG VIC VIC VIC VIC VIC 0.741 0.72 0.726 0.735 0.674 0.603 0.934 0.932 0.922 0.899 0.909 0.091 0.206 0.114 0.155 0.297 0.392 0.399 0.537 0.517 0.505 0.837 0.859 0.858 0.854 0.852 0.171 0.16 0.26 0.281 0.176 0.746 0.635 0.768 0.805 0.754 0.0026 0.0113 0.0248 0.0241 0.0287 0.0517 0.2397 0 0.1947 0.1971 0.0077 0.017 0.055 0.2962 0.0176 0.152 0.1298 0.1274 0.1413 0.1975 0.2284 0.2536 0.2598 0.2305 0.02 0.0048 0.0021 0.0021 0.0034 0.0404 0.119 0.1243 0.1209 0.1262 0.0001 0.0395 0.0363 0.036 0.0402 0.0579 0.0164 0.0152 0.0124 0.0113 0.0099 0.3082 0.2646 0.2729 0.3057 0.1896 0.1704 0.1396 0.1383 0.0811 0.0578 0.1415 0.1282 0.1865 0.0768 0.0572 0.0039 0.0277 -0.057 -0.07 0.1563 0.0884 0.114 0.0266 0.0344 0.103 -0.1868 0.3162 0.0637 0.2882 0.2301 0.0545 -0.019 0.261 0.516 -0.119 -0.015 0.1827 0.2753 0.2181 0.3337 0.087 0.3574 0.2823 0.278 0.2179 0.0046 0.1346 0.086 0.3638 0.0302 0.2068 -0.3422 0.5952 -0.1784 -0.3208 0.1088 7.2551 0.9616 -0.4026 2.4163 1.325 0.269 0.136 0.119 0.167 0.196 0.269 0.006 0.005 0.007 0.009 0.009 0.102 0.072 0.068 0.46 0.372 0.062 0.076 0.064 0.097 0.101 0.375 0.323 0.235 0.232 0.315 0.503 0.327 0.386 0.405 0.29 0.311 0.18 0.183 0.193 0.155 0.684 0.089 0.109 0.101 0.084 0.21 0.212 0.227 0.26 0.233 0.238 0.075 0.094 0.096 0.086 0.094 0.254 0.255 0.25 0.331 0.462 0.135 0.162 0.14 0.137 0.227 0.125 -0.002 0.114 0.204 0.226 0.27 0.304 0.266 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 VIP VIP VIP VIP VIP VIS VIS VIS VIS VIS VLF VLF VLF VLF VLF VMD VMD VMD VMD VMD VNA VNA VNA VNA VNA VNE VNE VNE VNE VNE VNG VNG VNG VNG VNG VNH 0.628 0.602 0.597 0.55 0.441 0.707 0.649 0.603 0.766 0.754 0.636 0.686 0.696 0.825 0.834 0.964 0.948 0.957 0.961 0.966 0.71 0.701 0.752 0.76 0.824 0.757 0.606 0.635 0.605 0.627 0.288 0.248 0.318 0.302 0.254 0.396 0.2157 0.1292 0.0809 0.0324 0.0673 0.0411 0.0336 0.0286 0.018 0.0462 0.0043 0.0149 0.0194 0.0196 0.0042 0.0043 0.0124 0.016 0.0382 0.0086 0.0109 0.0093 0.0186 0.0394 0.0132 0.0119 0.0228 0.0335 0.0495 0.0481 0.0442 0.0432 0.0003 0.028 0.035 0.0249 0.0265 0.0742 0.1789 0.07 0.0183 -0.0086 -0.0103 0.0909 0.0696 0.0634 0.0096 -0.0207 0.014 0.0097 0.0086 0.0036 0.0045 0.0226 0.036 0.0251 -0.0209 -0.0858 0.0439 0.0099 0.0119 0.0067 0.0051 0.0273 0.0335 0.015 0.0056 0.0024 0.0701 -0.0296 0.1674 0.2108 -0.4165 -0.2154 0.21 0.4913 0.2693 -0.0105 -0.1181 0.0989 -0.1328 0.3086 -0.1447 0.0012 0.324 0.1789 0.2241 0.2212 0.1728 -0.267 0.4228 0.0923 -0.1989 -0.1698 0.3808 -0.3975 0.7404 0.1894 0.366 0.1092 0.3482 -0.1784 -0.1053 0.0685 -0.4913 0.805 0.804 0.77 0.802 0.745 0.093 0.073 0.079 0.337 0.321 0.202 0.154 0.183 0.21 0.224 0.013 0.014 0.01 0.006 0.008 0.839 0.873 0.867 0.895 0.891 0.301 0.339 0.419 0.509 0.452 0.751 0.713 0.779 0.699 0.703 0.359 0.17 0.202 0.268 0.232 0.286 0.134 0.241 0.23 0 0.246 0.239 0.227 0.148 0.255 0.133 0.202 0.213 0.302 0.379 0.212 0.241 0.097 0 0.155 0.27 0.953 0.447 0.269 0.225 0.328 0.399 0.678 0.145 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 VNH VNH VNH VNH VNI VNI VNI VNI VNI VNL VNL VNL VNL VNL VNM VNM VNM VNM VNM VNS VNS VNS VNS VNS VOS VOS VOS VOS VOS VPH VPH VPH VPH VPH VPK VPK 0.519 0.545 0.54 0.343 0.339 0.451 0.484 0.541 0.582 0.149 0.18 0.256 0.268 0.319 0.213 0.261 0.199 0.213 0.232 0.456 0.53 0.517 0.472 0.426 0.686 0.68 0.725 0.721 0.769 0.795 0.656 0.69 0.702 0.698 0.573 0.517 0.001 0.0009 0.0058 0.0124 0.029 0.0293 0.0008 0.0009 0.001 0.0053 0.0148 0.024 0.0439 0.053 0.4411 0.46 0.49 0.49 0.49 0.0464 0.1962 0.2026 0.3061 0.3997 0.0008 0.0006 0.0011 0.0525 0.0013 0.0053 0.0021 0.0242 0.0991 0.0038 0.0067 0.0101 0.0103 -0.0562 0.0396 0.0099 0.0098 0.0004 -0.0084 -0.0382 0.1815 0.1618 0.1444 0.1498 0.1219 0.3288 0.3756 0.3201 0.3299 0.307 0.0954 0.1169 0.075 0.0847 0.1178 0.0116 0.0251 0.0008 -0.0067 -0.0372 0.06 0.0053 0.0058 0.004 0.0035 0.0581 0.0728 0.0743 0.1143 0.0766 -0.6088 -0.1934 0.0849 0.0574 0.1367 -0.5857 -0.0392 0.5667 0.1417 0.0913 0.3197 0.2929 0.4842 0.3729 0.2281 0.1652 0.2903 0.5382 0.3837 0.193 0.1639 -0.3114 0.4035 0.0975 -0.1886 -0.0896 1.8726 -0.9107 0.0782 0.2712 2.5055 -0.1032 0.2363 0.34 0.431 0.23 0.205 0.001 0.001 0.032 0.025 0.126 0.122 0.099 0.075 0.057 0.298 0.318 0.324 0.408 0.39 0.735 0.877 0.872 0.876 0.788 0.858 0.844 0.799 0.863 0.829 0.011 0.019 0.024 0.021 0.022 0.668 0.6 0.414 0.445 0.321 0.267 0.175 0.276 0.292 0 0.086 0.127 0.178 0.12 0.159 0.13 0.15 0.153 0.16 0.184 0.253 0.252 0.253 0.257 0.257 0.178 0.109 0.271 0 0.204 0.361 0.43 0.312 0.402 0.002 0.077 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 VPK VPK VPK VRC VRC VRC VRC VRC VSC VSC VSC VSC VSC VSH VSH VSH VSH VSH VSI VSI VSI VSI VSI VST VST VST VST VST VTB VTB VTB VTB VTB VTF VTF VTF 0.352 0.267 0.241 0.685 0.613 0.551 0.567 0.479 0.334 0.334 0.25 0.282 0.22 0.123 0.198 0.299 0.276 0.287 0.767 0.787 0.775 0.777 0.79 0.824 0.784 0.797 0.822 0.886 0.329 0.237 0.217 0.214 0.228 0.537 0.624 0.48 0.0071 0.055 0.1928 0.0017 0.0008 0.001 0.0002 0.2644 0.49 0.49 0.49 0.49 0.2428 0.1916 0.2134 0.2494 0.2635 0 0.002 0.0029 0.0015 0.0037 0.0068 0.0036 0.0046 0.0054 0.005 0.0076 0.0048 0.0127 0.0328 0.0002 0.0013 0.1663 0.2843 0.2329 0.0913 0.189 0.0417 0.0003 0.0018 0.2857 0.2464 0.2289 0.2392 0.2199 0.1479 0.1078 0.1032 0.0696 0.056 0.0339 0.027 0.04 0.0107 0.0044 0.0224 0.0306 0.0003 -0.0398 -0.0774 0.0945 0.078 0.057 0.0409 0.0521 0.0804 0.0706 0.2005 0.3269 0.2547 0.0786 0.3273 1.1955 -0.2031 -0.4933 0.135 0.4629 0.1988 0.1745 0.2099 0.016 0.0701 -0.1798 0.0822 -0.2769 -0.146 0.274 0.0258 0.0239 -0.3707 0.0896 -0.3992 0.5087 -0.0408 -0.1851 -0.1262 0.4021 -0.1643 -0.1797 0.0313 -0.0467 0.412 0.2411 0.3995 0.55 0.422 0.421 0.101 0.099 0.148 0.12 0.134 0.395 0.314 0.248 0.346 0.403 0.545 0.448 0.454 0.561 0.653 0.591 0.599 0.541 0.589 0.597 0.883 0.874 0.842 0.883 0.867 0.257 0.259 0.256 0.246 0.249 0.226 0.189 0.231 0.053 0.075 0.119 0.25 0.254 0.262 0.641 0.492 0.11 0.154 0.204 0.212 0.209 0.033 0.069 0.095 0.119 0.127 0.197 0.303 0.274 0.32 0.397 0.252 0.253 0.524 0 0.037 0.03 0.057 0.242 0.145 0.107 0.079 0.082 2012 2013 2009 2010 2011 2012 2013 VTF VTF VTO VTO VTO VTO VTO 0.518 0.43 0.76 0.664 0.635 0.599 0.53 0.0157 0.0143 0.0474 0.0107 0.011442 0.0208 0.0194 0.1365 0.0878 0.0102 0.0262 0.0223 0.0181 0.0186 0.2885 0.08 0.5469 0.1606 0.2319 -0.0147 -0.0469 0.19 0.139 0.894 0.869 0.846 0.836 0.865 0.079 0.079 0.111 0.185 0.122 0.133 0.264 The result output by Eviews 6.0 - Descriptive Statistics - Correlation matrix - OLS result - Fixed effects model result - Random effects model result - Hausman test result