Impact of State Ownership on Stock Liquidity in the Vietnam Stock Market
DOI:
https://doi.org/10.55677/GJEFR/01-2025-Vol02E1Keywords:
State Ownership, Stock Liquidity, Threshold ModelAbstract
In VietNam, State divestment has been strongly promoted since 2016, however, state ownership from 2011-2018 did not change much, fluctuating only within the range of 22.28% - 25.22%, and by 2019, it had dropped sharply to 10.4%. Some listed companies still maintain a relatively high level of state ownership, especially in the VN30 group and some sectors such as banking and oil & gas. It can be seen that although the process of transformation and equitization of state-owned enterprises has been active, by 2019, state ownership remained substantial, with the proportion of state ownership greater than 11.72% accounting for about 40%. The research results with 681 enterprises from 2014 to 2019 suggest that: a 95% confidence interval of state ownership in the threshold (0.1086; 0.1182) will help increase stock liquidity. In particular, at effectively operating enterprises with high sustainable growth rates, this will promote an increase in asset value for the State and improve stock liquidity.
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