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An Application of the Scorecard Tool to Measure Corporate Governance Quality: Empirical Study in a transition country

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  • Luu Thi-Minh-Ngoc

    (International School, Vietnam National University Hanoi, VIETNAM)

  • Nguyen Phuong Mai

    (International School, Vietnam National University Hanoi, VIETNAM)

Abstract

Nowadays, the corporate governance quality (CGQ) of a company has become increasingly important as it is the benchmark for the investment decision-making process. However, there are not many studies of CGQ in the Vietnamese public sector. In this regard, this study adopted and adapted the Association of Southeast Asian Nations (ASEAN) corporate governance scorecard and the Vietnamese Listed Company Awards scorecard to evaluate the CGQ of state-owned enterprises (SOEs) in Vietnam. Data from 220 equitized SOEs were collected from a self-administered survey and double-checked with information from in-depth interviews with the company’s managers and their documents. Collected data were analyzed to score the CGQ of surveyed companies. Results showed that the CGQ of survey companies met the basic requirements that comply with the legal framework. The analysis also showed the differences between two groups of state-owned enterprises: listed versus unlisted joint-stock companies. Based on the findings, we suggested companies improve and adjust their governance policies following 77 scorecard criteria and apply international best practices in corporate governance to promote their brand value to become more appealing to investors.

Suggested Citation

  • Luu Thi-Minh-Ngoc & Nguyen Phuong Mai, 2024. "An Application of the Scorecard Tool to Measure Corporate Governance Quality: Empirical Study in a transition country," Foundations of Management, Sciendo, vol. 16(1), pages 127-138.
    • Handle: RePEc:vrs:founma:v:16:y:2024:i:1:p:127-138:n:1008
    DOI: 10.2478/fman-2024-0008
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate Governance; Corporate Governance Quality; State-Owned Joint-Stock Companies; Vietnam;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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