The COVID-19 pandemic, ownership structure, and firm performance: New evidence from Vietnamese listed firms

Abstract

This paper examines the impact of the COVID-19 pandemic on firm performance, emphasizing the moderating role of ownership structure among non-financial enterprises in Vietnam. Utilizing quarterly data spanning from 2010 to 2023, we analyze the responses of state-owned enterprises (SOEs) and foreign-owned enterprises (FOEs) to the economic disruptions induced by the pandemic. Employing a Difference-in-Differences analytical approach, our empirical findings reveal a significant negative effect of the COVID-19 pandemic on firm performance, as measured by return on assets (ROA). The adverse impact is particularly pronounced among SOEs, indicating their limited capacity to adapt swiftly to economic shocks. In contrast, FOEs demonstrate greater resilience, likely attributable to their stronger access to international markets, providing a buffer against pandemic-induced disruptions. These results highlight the critical importance of ownership structure in shaping firm resilience and performance during economic crises.