The Determinants of Equitization Success of State-Owned Enterprises in Vietnam

Abstract

      This study aims to investigate the factors that affect the success of Vietnam's State-owned enterprises' (SOEs) equitization. Using a unique sample of equitization of unregulated SOEs in Vietnam from January 2010 to April 2016, we find that age, valuation, and gross margin of the SOEs are significant determinants of the success of the equitization. Specifically, in contrast with prior literature, age is found to have a negative impact on the success of the equitization. On the other hand, valuation and gross margin have a positive impact on the success of the equitization.