Foreign Ownership Affects Corporate Governance and Firm Performance of Firms Listed on Ho Chi Minh Stock Exchange

The study aims to examine foreign ownership on firm performance through the mediating role of corporate governance. In addition, the study determines the moderating role of business strategy on the relationship between foreign ownership and firm performance. The research data of 128 companies listed on the Ho Chi Minh stock market is collected through Thomson - Reuters DataStream and financial reports published over the years from 2017 to 2019. The results proved that foreign ownership has a negative impact on firm performance through the mediating role of corporate governance. Similarly, business strategy (measured by cost leadership strategy) has a negative impact on the relationship between foreign ownership and firm performance, however, business strategy (measured through product differentiation strategy) is the opposite. The results of the study provide empirical evidence and suggest policies for corporate administrators and State management agencies.