Corporate governance in Vietnam and in state owned enterprises after equitization Đỗ Lan Hương Khoa Quản trị Kinh doanh Luận văn Thạc sĩ ngành: Kinh doanh quản lý; Mã số: 60 34 05 Người hướng dẫn: TS Cấn Văn Lực Năm bảo vệ: 2010 Keywords: Quản trị kinh doanh; Doanh nghiệp nhà nước; Cổ phần hóa; Quản lý điều hành Content TABLE OF CONTENTS ACKNOWLEDGEMENT i ABSTRACT ii TÓM TẮT iii TABLE OF CONTENTS iv LIST OF ABBREVIATIONS vi LIST OF TABLES vii CHAPTER 1: INTRODUCTION 1.1 Background .8 1.2 Rationale of the Thesis 1.3 Purpose of the Thesis 1.4 Key Research Area 10 1.5 Methodology 10 1.6 Contribution of the Thesis 10 1.7 Outline 11 CHAPTER 2: LITERATURE REVIEW 12 2.1 Definitions of Corporate Governance 12 2.1.2 What is Corporate Governance? 12 2.1.2 Objectives of Corporate Governance 12 2.1.2 Codes of Corporate Governance 13 2.2 Models of Corporate Governance 14 2.2.1 Shareholder Model 14 2.2.1 Stakeholder Model 15 2.3 Corporate Governance System 17 2.4 Corporate Governance Mechanisms 19 2.4.1 Internal Mechanisms 20 2.4.2 External Mechanisms 25 2.5 Corporate Governance in Transition Economies 28 2.6 Chapter Summary 31 CHAPTER 3: CORPORATE GOVERNANCE IN VIETNAM 32 3.1 Introduction 32 3.2 Legal framework and law enforcement 33 3.2.1 Development of a legal framework for corporate governance in Vietnam 33 3.2.2 Current corporate governance framework in Vietnam 34 3.3 Rights of Shareholders 39 3.3.1 Basic shareholder rights 39 3.3.2 Right to participate in or to be informed of decisions on key corporate changes 42 3.3.3 Rights to participate and vote in general shareholders’ meeting 43 3.3.4 Markets for corporate control 44 3.4 Equitable Treatment of Shareholders 45 3.4.1 Equal treatment to all shareholders 45 3.4.2 Minority shareholder protection 46 3.4.3 Insider trading and abusive self-dealing 48 3.4.4 Related party transactions 48 3.5 The Role of Stakeholders in Corporate Governance 49 3.6 Disclosure and Transparency 49 iv 3.6.1 Information disclosure 50 3.6.2 Quality of accounting standards 52 3.6.3 Annual audit 53 3.6.4 External Audit 55 3.6.5 Channels for disseminating information 56 3.7 Board of Directors 57 3.8 Board of Supervisors 62 3.9 Remaining corporate governance issues in Vietnam 63 3.10 Chapter Summary 64 CHAPTER 4: CHANGES IN CORPORATE GOVERNANCE OF STATE OWNED ENTERPRISES AFTER EQUITIZATION 66 4.1 Introduction 66 4.2 Methodology and Data collection 67 4.3 Ownership structure after equitization 68 4.4 Board of Directors Composition 69 4.5 The Board of Supervisors 70 4.6 Manager orGeneral manager (CEO) 72 4.7 Other committees 73 4.8 Executive Compensation 73 4.9 Case Study 73 4.9.1 Vinamilk 74 4.9.2 PVFCCo 77 4.9.3 Performance and stock price comparison 80 4.10 Chapter Summary 81 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 82 REFERENCES 85 v REFERENCES  Vietnamese  Bao Dai Doan Ket (Sep 2010), “Luat chung khoan: Co lai rat kho” , Article  Bao Dau tu Chung Khoan Dien tu (May 2010), “Chat luong cong bo thong tin: Nhieu doanh nghiep doi pho”, Aticle  Bao Sai Gon Tiep thi (September 2010), “Van nhieu diem chua minh bach”, Article  SAGA (2009), “Minh bach Thong tin tren thi truong chugn khoan”, Article  Thoi bao kinh te Sai Gon (September 2010),“Dau de tim su minh bach”, Article  English:  Allen, F., (2005), “Corporate Governance in Emerging Economies,” Oxford Review of Economic Policy 21, 164-177  Allen, F., and Gale D., (2000), “Corporate Governance and Competition,” in X Vives (ed.) 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(2001a), Lessons from Corporatization and Corporate Governance Reform in Russia and China Paper presented at the International Conference on Corporate Governance Development in Vietnam, Hanoi (October),... CHANGES IN CORPORATE GOVERNANCE OF STATE OWNED ENTERPRISES AFTER EQUITIZATION 66 4.1 Introduction 66 4.2 Methodology and Data collection 67 4.3 Ownership structure after. .. Risky Corporate Governance in Vietnam 86  Hart, O (1995), Corporate Governance: Some Theory and Implications Economic Journal 105, 678-689  Healy, P and Palepu K (2001), Information asymmetry, corporate