AN EMPIRICAL INVESTIGATION OF CORRUPTION AND FIRM GROWTH IN VIETNAM

This article tests the effect of corruption on firm growth in Vietnam using firm level data by applying the Bayesian method. The dataset obtained from 558 state-owned and non-state owned companies listed on Vietnam Security Exchange from 2012-2019. The empirical results indicate that corruption has a significant influence on the whole sample and subsamples of state-owned and private firms. Moreover, the findings represent a significant impact of other financial factors such as profitability, firm size, financial leverage, and asset liquidity on firm growth. Finally, the political uncertainty is taken into account as well and shows the evidence of significant effect on firm growth in Vietnam. These findings suggest several recommendations for not only policy-makers but also managers in order to gain higher speed in firm growth.