Volume 2 • Issue 3 | September, 2018

The Effect of Corporate Governance on Stock liquidity: Evidence from Listed Firms in Vietnam Stock Exchange

Hoang Thi Phuong Anh, Truong Dieu Dan, Tran Thi Kim Oanh


The object of this study is to examine the impact of the quality of corporate governance on equity liquidity for listed firms in the Vietnamese stock exchange. By using the generalized least-squares approach (GLS) and a sample of 350 firms listed on HOSE and HNX during period from 2010–2014, empirical research results show a significant relationship between the quality of corporate governance and stock liquidity. Specifically, the quality of corporate governance will help improve turnover (by the monthly number of shares traded to the total number of shares outstanding) and liquidity ratio (by total daily trading volume to the absolute value of stock return). Meanwhile, the study also finds that the impacts of corporate governance on stock liquidity is not the result of any specific governance category but also many categories in the governance index