Vietnamese (VN)English (UK)

The effect of bank capital and ownership structure on bank performance: evidence in Vietnam

By: Nguyen Thi Viet Anh - VNP 20

Supervisor: Dr. Nguyen Thi Thuy Linh

This study aimed at assessing the impact of capital structure and ownership structure on Vietnamese bank performance. The study used secondary data of forty-nine Vietnamese banks with 387 observations in the period 2005-2014, employing Feasible General Least Square as well as Discoll-Kraay Robust for cross-sectional dependenceestimation. Empirical results show that capital structure is significantly and positively related to Vietnamese bank performance. Meanwhile, ownership structure impact negatively on profitability of Vietnamese banks (measuring by returns on total assets). The findings indicate that the profitability of the Private Banks is higher than the State-owned ones.

Keywords: Bank performance, Capital structure, Ownership structure, Net Interest Margin, Returns on Assets, Returns on Equity