Tìm hiểu vai trò của các thông lệ tốt về lãnh đạo và quản trị doanh nghiệp trong việc cải thiện đầu tư tổ chức đối với các công ty niêm yết trên thị trường chứng khoán tại Việt Nam

TABLE OF CONTENTS ACKNOWLEDGMENT i ABSTRACT ii TÓM TẮT v TABLE OF CONTENTS viii LIST OF FIGURES xii LIST OF ACRONYMS xiii INTRODUCTION .1 CHAPTER 1: LITERATURE REVIEW 1.1 An overview of institutional investors .6 1.1.1 The impact of having institutional investors involved in a company‟s ownership 1.1.2 What influences the investment decision of institutional investors (Determinants of institutional ownership) 13 1.2 An overview of leadership and corporate governance 21 1.2.1 Leadership 21 1.2.2 Corporate Governance 24 1.3 Why good leadership and corporate governance practices can help companies in general and Vietnamese listed companies in particular to improve institutional investment 31 1.3.1 They become “an increasingly important factor for investment decisions” 31 1.3.2 Mitigate agency problems .31 1.3.3 Create greater value for companies 32 viii 1.3.4 Institutional investors would pay a good premium for well led and governed companies 33 Chapter summary: 33 CHAPTER 2: ANALYSIS AND ASSESSMENT ON THE APPLICATION OF LEADERSHIP-CORPORATE GOVERNANCE PRACTICES IN VIETNAM LISTED COMPANIES 34 2.1 Business environment in Vietnam 34 2.1.1 Vietnam Economic Outlook .34 2.1.2 Vietnam Stock Market 39 2.2 Leadership and corporate governance in Vietnamese listed companies .46 2.2.1 Organization type influences the leadership and corporate governance style 46 2.2.2 Vietnamese companies are late developers in the area of leadership development 47 2.2.3 A large majority of Vietnamese companies are either state-owned or familyowned 48 2.2.4 Board of Directors, committees and CEOs issues 50 2.2.5 Ambiguous disclosure practice and weak transparency 52 2.2.6 Weak regulation to protect minority shareholders 53 2.2.7 Weak risk management 54 2.2.8 Remuneration/Compensation 57 2.2.9 Communication (Investor Relation) 59 2.3 Three cases of most attracted Stocks – ABC, FPT and VNM 62 2.3.1 The case of ACB 63 2.3.2 The case of FPT .67 2.3.3 The case of VNM .70 ix Chapter summary 74 CHAPTER 3: RECOMMENDATION 76 3.1 Opportunities and threats to the attraction of institutional investors into Vietnamese listed companies 76 3.1.1 Opportunities 76 3.1.2 Threats 77 3.2 Recommendation to identify the “right” investors 79 3.2.1 Targeting institutional investors with long investment horizons .80 3.2.2 Institutional shareholders with positive attitude toward mutual benefits 80 3.2.3 Institutional shareholders who have responsibility for their votes 81 3.3 Recommendation on how to improve institutional investment to Vietnamese listed companies through good leadership and corporate governance practices .81 3.3.1 Quality of leadership 81 3.3.2 Quality of corporate governance 87 3.4 Action plan .101 3.4.1 Build the Board of Directors of high quality and professionalism 101 3.4.2 Build attractive but reasonable vision, objectives and annual business plan for the company 102 3.4.3 Make reliable financial statements 102 3.4.4 Improve the role of Internal control .102 3.4.5 Improve the abilities of risk forecast and management 103 3.4.6 Disclosure policy 103 Chapter summary: 105 x CONCLUSION 107 REFERENCES 108 APPENDIX 112 Appendix1 Interviewees list 112 Appendix Questionnaire to Buy-side and Securities Corporations .115 Appendix Questionnaire to Sell-side .116 Appendix4 List of fund management companies in Vietnam 118 Appendix The birth and growth of institutional investors 121 Appendix Definition and classification of institutional investors 122 xi LIST OF FIGURES Figure 1: Determinants of institutional ownership 21 Figure 2:Leadership Causal Chain 24 Figure 3: Public companies organization chart 26 Figure 4: Corporate Governance Practices and Firm Performance 28 Figure 5: Vietnam GDP growth 2000-2011 35 Figure 6: Market trading volume (Unit: share) 40 Figure 7:Market Trading Value (Unit: VND million) 41 Figure 8: General organizational structure of listed companies in Vietnam 55 Figure 9: Comparison between Chairman and CEO‟s responsibility and duties 88 Figure 10: The “three lines of defense model” .100 xii LIST OF ACRONYMS AGM Annual General Meeting AR Annual report BoDs Board of Directors BoM Board of Management CEO Chief Executive Officer EPS Earning Per Share ERM Enterprise Risk Management FDI Foreign Direct Investment FIA Foreign Investment Agency FII Foreign Indirect Investment GDP Gross Domestic Product HASTC Hanoi Stock Trading Center HNX Hanoi Stock Exchange HSX Hochiminh Stock Exchange IR Investor Relation OECD Organization for Economic Cooperation and Development POEs Private-owned enterprises ROA Return on Asset ROE Return on Equity SME Small and Medium Enterprises SSC State Securities Commission SOEs State-owned enterprises xiii INTRODUCTION Background of the study “A key element in modern capital markets is the interplay between firms that increasingly raise capital internationally, and institutional investors that manage growing pools of assets”.1 Capital is an essential input for any business The bigger the business expansion is, the more importance of additional capital Funding plan always plays an utmost crucial role throughout the companies‟ growth path Long time ago, companies mostly relied on state or individual/internal capital when they need a fund raise In modern economy, they have a new and more efficient capital pipeline channel to facilitate this demand which is the stock market This special market has their own main players, including Sell-side and Buy-side Sell-side basically consists of investment banks and listed companies, who create stocks and bonds, and sell these securities to investors Meanwhile, Buy-side consists of individual investors and institutional investors who are asset managers, pension funds, insurance firms, hedge funds, etc Institutional investors are very crucial forces and receive warm welcome from almost every stock exchange in the world On emerging markets like Vietnam, institutional investors, especially foreign ones, are being needed due to their positive contribution to the development of local financial markets In Vietnam, stock market was born when the country‟s first official trading floor – Ho Chi Minh Stock Exchange Center (HOSE, latter renamed HSX) – opened on July 20th, 2000, followed by the Hanoi Securities Trading Center (HASTC, latter renamed HNX) half a decade later Since inception, the scale of both trading Miguel A Ferreira,The Colors of Investors‟ Money: Which Firms Attract Institutional Investors From Around the World, 2006 floorshave been growing strongly and gradually becoming a significant capital channel in medium and long term, positively contributing to the country‟s industrialization and modernization During the period of 2000-2005, market capitalization stayed only around 1% of GDP In 2006, it had a strong leap up to account for 22.7% of GDP and continues to grow at over 43%of GDP in 2007 By 30th August 2012, the total market capitalization of HSX and HNX was US $35.4billion, equivalent to approximately 32% of 2011‟s nominalGDP (US $110 billion).According to the strategies to develop the local securities market during 2010-2020of State Securities Commission (SSC),Vietnam targets to raise its stock market capitalization to 65%-70% of its GDP in 2015 and to 90%-100% of the GDP in 2020 The number of companies listed on the Vietnam stockmarket has been increasing rapidly, even in the worst time It went from the first companies in July2000 to more than 600 ones at the end of 2010 Shares issuance activity to raise capital via the stock market started to take off since 2006 when 44 listed companies successfully made new issuance of more than 203 million shares In 2007, it reached the extremely high level where 192 companies and four banks made 200 issuances with total capital up to nearly VND 40,000 billion The number of investors participating in the stock market increasedstrongly, too, regarding all individual investors and domestic and foreign institutions In 2000, there are approximately 3,000 trading accounts Steadily, this number increased to 12,000.Of which, there are 1,300 institutional accounts The number of fund management companies grew from a few in the 1990s to 47 in 2010, accordingly Foreign investors quickly showed their major role, especially in creating market liquidity That is to say, together with foreign direct investment (FDI), foreign indirect investment (FII) has become an important source of foreign funds to support Vietnam‟s growing economy Likewise, the successful economic reform also made Vietnam an attractive frontier - emerging market for many foreign institutional investors During the past decade, business cycles has been going on from the stability, recessions and boomsand profound inflation.“Many new industries that have revolutionized society, such as technology, biotechnology, and communications, etc And through it all, the need for capital has relentlessly grown, and the role of investment attraction has grown, which has led to competition for capital” And one of the best ways to win the competition for capital is lying in the companies‟ leadership and corporate governance practices Statement of the problem A century ago, companies in the world and in Vietnam almost did not know or care who their major shareholders were Today, upon realizing the significance of institutional investors, companies started to change attitude toward attracting and keeping institutional investment In response to shareholder desires, companies are paying more attention to their leadership and corporate governance A common thought of almost Vietnamese listed companies half decade ago was that: “A company’s record will speak for itself”, say, if companies work well enough, institutional investors certainly be aware of and come for further discussions However, how to attain good and better performance with better business results, becoming a good and better company in order to be discovered and welcomed by investment community are an open question The answer largely comes from the good leadership and corporate governance practices Various former study did research on leadership, corporate governance alone or in relation with companies performance, but very few studies have examined the dynamic interactions between the good leadership and corporate The Nasdaq Stock Market, The Strategy and Practice of Investor Relations, p.112 governance practices and the attraction of institutional investors Therefore, the role of leadership and corporate governance and their relationship to corporate performance in successful investment is in need of further research Purpose of the study From own experience in working with both Buy-side and Sell-side during career, the author has felt the need for specific pointers on implementing good leadership and corporate governance practices in Vietnamese listed companies This study therefore investigates the impact of good leadership and corporate governance practices on investor decision-making and the extent to which they are leading indicators of future financial performance It also aims to serve as a guide for those who wish to strengthen leadership and corporate governance practices in their organizations This aim drives into two objectives The first objective is to show why good leadership and corporate governance practices are important in terms of a means to achieve better corporate performance to help Vietnamese companies attract institutional investment The second objective is to provide guidance on how to perform this function efficiently and effectively to add value to companies, including but not limited to two parts: The first is Quality of leadership and the second is the Quality of corporate governance Quality of leadership was represented in four main factors: 1) Quality of companies‟ vision; 2) Quality of company‟s strategy; 3) Execution of company‟s strategy and 4) Quality of leaders Quality of corporate governance is built from aspects: 1) Constituting an independent and objective board; 2) Compensation/Remuneration issue; 3) Improve transparency; 4) Improve communication quality and 5) Improve risk management 14 Adam Harmes (2001), Institutional Investors and Polanyi's Double Movement: A Model of Contemporary Currency 15 Hayes, R H and W J Abernathy (1980), “Managing our way to economic decline”, Harvard Business Review, p 67-77 16 K Heenetigala and A Armstrong, The Impact of Corporate Governance on firm performance in an unstable economic and political environment: Evidence from Sri Lanka”, Victoria University, Australia 17 Hickman, C R., and Silva, M (1984), “Creating excellence: Managing corporate culture, strategy, and change in the new age”, p 151 18 International Finance Corporation, The tangible benefits of good governance, 2009 19 International Organization for Standardization (ISO), 2008 20 Journal of Finance 42, p.483-510 21 Rahul Kochhar and Parthiban David (1996), “Institutional Investors and Firm Innovation: A Test of Competing Hypotheses”, Strategic Management Journal 22 Kouzes, J M & Posner, B Z (1984), “Getting extraordinary things done in organizations”, Brochure for a program offered by Executive Development Center, Leavey School of Business and Administration, University of Santa Clara 23 Maria Maher and Thomas Andersson, “Corporate governance: Effects on firm performance and economic growth”, OECD, 1999 24 McKinsey report, “Mapping global capital markets 2011” 25 McKinsey Quarterly (2004), “How to Separate the Roles of Chairman and CEO” 26 OECD, “OECD Principles of Corporate Governance”, 2004 109 27 Sarah Mavrinac and Tony Siesfeld, “Measures that Matter: An Exploratory Investigation of Investors‟ Information Needs and Value Priorities”, Ernst & Young Center for Business Innovation 28 Merton, R.(1987), A Simple Model of Capital Market Equilibrium with Incomplete Information 29 G Monks, and N Minow (1995), Corporate Governance, Blackwell Business, Cambridge, p 30 Jeff Neal (2005), “Back to Basics: The Importance of Liquidity”, http://www.optionetics.com/market/articles/13652 31 Schwandt, D R., & Szabla, D B (2007) "Systems and leadership: Coevolution or mutual evolution towards complexity?", Complexity Systems Leadership Theory Eds J.K Hazy, J.A Goldstein and B.B Lichtenstein Mansfield, MA: ISCE Publishing 32 Andrei Schleifer & Robert W Vishny, A Survey of Corporate Governance, The National Bureau of Economic Research, Working Paper 5554, Page 33 StockPlus Vietnam, “Discount Rates May Force Funds To Divest”, http://www.stoxplus.com/News/55216/1/179/discount-rates-may-force-fundsto-divest.stox 34 Stogdill, R.M (1948),“Personal factors associated with leadership: A survey of the literature”,Journal of Psychology, 25, 35-71 35 The Nasdaq Stock Market, The Strategy and Practice of Investor Relations, p.112 36 Vietnamworks, “Vietnam still faces serious shortage of CEO within next four years”, http://advice.vietnamworks.com/en/node/302 37 Wheatley, M (2006), Leadership and the New Science USA, Berrett-Koehler 38 Gary Yukl, Leadership in Organizations, Page 202, Gary Yukl, 1994-2010 110 39 Zahra, S A (1996), “Governance, ownership, and corporate entrepreneurship: The moderating impact of industry technological opportunities”, Academy of Management Journal, p.39 40 World Bank report, “Vietnam Stock Market Needs Institutional Investors, Investment Caps” 41 http://www.mof.gov.vn/portal/page/portal/mof_en/Search%20detail?p_persid= &p_folderid=&p_itemid=2734434&p_year= 42 http://www.institutionalinvestor.com/Article/1356891/HISTORY-The-WorldAs-We-Found-It.html 111 APPENDIX Appendix1 Interviewees list No Name Position Organization Location Investment VietCapital Asset HCMC Officer Management Industry Manager Viet Fund BUY-SIDE Vu Van Trang Pham Tuan Anh HCMC Management Le Le An Na Investment Blackhorse Asset Analyst HCMC Management PTE LTD Le Dang Khoa Analyst Bao Viet Fund HCMC Ha Xuan Thanh Investment Indochina Capital HCMC Manager Advisors Limited Director, Equity Saigon Asset Investment Management Investment Prudential Fund Manager Management Analyst SGI Capital HCMC Chief FPT Capital HCMC Hoang Xuan Chinh Le Hoang Vu Le Nguyen Dang HCMC HCMC Khoa Nguyen Thanh Hai Representative – 112 HCM Office 10 Phan Thi Thuy Hien Analyst Yuki Techno Flow HCMC Co., Ltd SECURITIES CORPORATION 11 Nguyen Thi Thanh Head Of Research Nga Vietcombank HCMC Securities Corporation 12 Hoang Ho Phu Head Of Research Petrolimex Securities And Investment 13 Nguyen The An Analyst Saigon Securities HCMC Investment 14 Nguyen Thi Yen Analyst Hochiminh Securities HCMC Corporation 15 Ngo Hoang Diem Analyst Chi 16 VNDirect Securities HCMC Corporation Ton Minh Phuong Senior Analyst VietCapital Securities HCMC Corporation 17 Nguyen Chi Hong Investment Viet Dragon Ngoc Department HCMC Securities Corporation 18 Vo Binh Equity Analyst Sacombank Securities HCMC JSC 19 Dang Thi Khanh Analyst 113 Mien Nam Securities HCMC Duyen 20 Duong Tuan Anh Corporation Investment Kim Long Securities Research Corporation Investor Relation – Thu Duc House HCMC Head of Investment And HCMC Development & Trading Of Real Investment Estate JSC SELL-SIDE 21 Quan Diem Trang Finance Department 22 Nguyen Hoang Anh Relations 23 Nguyen Quang Huy Analyst Hoa Binh HCMC Construction And Real Estate Corporation 24 Nguyen Quang Dat Deputy Head of Hoang Quan Real Investor Relations 22 Tran Tu Luc Estate JSC Finance Ba Ria-Vung Tau Vung Investment House Development Tau Department JSC 114 HCMC Appendix Questionnaire to Buy-side and Securities Corporations Which position (s) you have in your company? How often you visit/contact with listed companies? - Quarterly - Half year - Annually - Only when needed Is it easy/difficult to approach listed companies in Vietnam? How is it like to get information from the companies? - Easy - Difficult - Dependent on regional culture where the companies locate - Dependend on corporate culture - Case by case Do(es) leadership and/or corporate governance matter to your valuation on companies? Could you quantify this criterion into your stock price valuation model? Do companies‟ vision, mission and strategy matter to your valuation on companies? Could you quantify these criteria into your stock price valuation model? Does companies‟ annual plans matter to your valuation on companies? What is annual plan‟s role in your stock price valuation model? Your viewpoints toward companies‟ financial reporting system Your viewpoints toward companies‟ remuneration scheme for BoD and BoM Your viewpoints toward companies‟ Risk Management System 10 Your viewpoints toward companies‟ Investor Relation program 115 Appendix Questionnaire to Sell-side Which position (s) you have in your company? (You can chooseseveral answers) Chairman Member of board Managing Director (CEO) Others How many members of board are there in your company? Is there any representative of institutional shareholder in your company‟s BoD? Which criteria are used to select the member of BoD?(You could choose more than one answer) - Professional competence - Leadership competence - Large social network - Dependent on vote How is the BoD of your company evaluated? (You couldchoose more than one answer) - Only base on company‟s business result - Internally mutual evaluated, base on various sides - Not evaluated yet How is the structure of remuneration system for the members of BoD? - Fix - Variable - Others: 116 How often is the board meeting in your company? - Once a year - More than once a year - Only when needed What are your viewpoint toward communicating with institutional investors? Do you think your company‟s shareholders understand/not understand the company‟s vision, mission, strategy and plan? Do you think your company‟s employees understand/not understand the company‟s vision, mission, strategyand plan? 10 Are the BoD under big pressure about the company‟s business result from shareholders? 11 Does your company appy any Risk Management System? What is it like? 12 How could you characterize your corporate culture? (You can choosemore than one answer) - Customer oriented - Trust oriented - Business result oriented - Others 117 Appendix4 List of fund management companies in Vietnam (As of August 30th 2012) No Company Name Website Chartered Capital (VND) Thép Việt Fund Management www.thepviet.com.vn JSC 25.000.000.000 Tín Phát JSC 26.000.000.000 Thái Dƣơng Management JSC VIPC Fund Management JSC AIC Fund Management JSC 25.000.000.000 An Phú Fund Management JSC 25.000.000.000 Global Petroleum Management JSC Hùng Việt Fund Management www.hvcapital.vn JSC 25.000.000.000 VietnamSynergy Capital Fund Management JSC 25.000.000.000 10 Lộc Việt JSC 25.000.000.000 11 RNG Fund Management JSC 12 SME Fund Management JSC www.smecapital.vn 25.000.000.000 13 Sabeco Fund Management JSC www.sbf.vn 25.000.000.000 14 Sài Gòn JSC www.saigoncapital.com.vn 25.000.000.000 15 Thăng Long Fund Management www.tlmcapital.com.vn JSC 30.000.000.000 16 Việt Cát JSC 25.000.000.000 Fund Management Capital Fund 25.000.000.000 www.vipc.com.vn www.gpfund.com.vn Fund Management Fund Management 33.000.000.000 25.000.000.000 50.000.000.000 Fund Management 118 17 Việt Tín JSC 18 Việt Nam Alliance Management JSC 19 Nhân Việt Fund Management JSC 20 Sài Gòn - Hà Nội Management JSC 21 Thành Việt Fund Management www.thanhviet.com.vn JSC 22 PVFC CapitalManagement JSC www.pvfccapital.com.vn 100.000.000.000 23 Vietnam Investment Management JSC www.vinafund.com 209.600.000.000 24 Anpha Fund Management JSC 25 An Bình JSC Fund Management 26 An Phúc JSC Fund Management 27 Minh Việt Securities Investment Fund Management JSC 50.000.000.000 28 Phƣơng Đông Management JSC 25.000.000.000 29 FPT Fund Management JSC www.fptcapital.com.vn 110.000.000.000 30 MB Fund Management JSC www.mbcapital.com.vn 100.000.000.000 31 SGI Investment Management JSC 32 Viet Capital Asset Management www.vietcapital.com.vn Joint Stock Company 33 Victoria Capital Management www.vcmc.com.vn JSC 28.000.000.000 34 Viet Dragon Fund Management JSC 40.000.000.000 Fund Management Fund Fund Fund www.viettincapital.com 30.000.000.000 www.vnalliance-capital.com 50.000.000.000 25.000.000.000 www.shf.com.vn 60.000.000.000 88.000.000.000 10.000.000.000 www.abt.com.vn 30.000.000.000 www.anphucinvestment.vn 25.000.000.000 Fund Fund 30.000.000.000 119 150.000.000.000 35 HAPACO Securities Investment Fund Management JSC 25.000.000.000 36 BIDV PARTNERS Management JSC 32.000.000.000 37 Vietcombank Management Company 38 Prudential Vietnam Fund Management Private Limited www.prudentialfund.com.vn Company 39 Công ty TNHH MTV Quản lý quỹ Ngân hàng TMCP Công www.vietinbankbankcapital.vn 500.000.000.000 thƣơng Việt Nam 40 IPA Securities Investments Fund Management Limited Company 41 Techcom Limited 42 Manulife Asset Management www.manulifeam.com.vn (Vietnam) Company Limited 26.000.000.000 43 SSI Asset Management Company Limited 30.000.000.000 44 Bao Viet Fund Management www.baovietfund.com.vn Limited Company 25.000.000.000 Dong A Limited 30.000.000.000 45 Capital Capital VIETNAM Investment http://www.bvim.com.vn Fund Company www.vcbf.com 38.000.000.000 25.000.000.000 50.000.000.000 www.techcombank.com.vn Company 40.000.000.000 46 ACB Capital Management www.acbcapital.com.vn Company Limited 50.000.000.000 47 Lotus Investment Management www.lotusimc.com Company 25.000.000.000 120 Appendix The birth and growth of institutional investors The concept “Institutional Investor” was assumed to first come out in March, 1967, from a Montreal Stock Exchange Then, it was delivered to Wall Street-ers, fund managers and government officials.56 Institutional investors started to become important participants in the US equity markets in past three decades Over this period, both the number of institutional investors and the amount of funds they manage have grown dramatically 57 In Vietnam, institutional investors, especially foreign ones, joined as dynamic players on securities market since the birth of the two stock exchanges: Ho Chi Minh City Securities Trading Center (now it is Hochiminh Stock Exchange – HSX) and Hanoi Securities Trading Center (now it is Hanoi Stock Exchange – HNX) If foreign institutional investors are mentioned as an integral part of the foreign indirect investment (FII), the first FII wave in Vietnam came more than 10 years ago, in the 1990s when seven large investment funds came to Vietnam, including Vietnam Lazard Fund, Templeton Vietnam, Beta Fund, etc., bringing total capital of nearly US $700 million All of them withdrew during the Asian financial crisis The second wave of FII kicked off in 2002 with Mekong Enterprise Fund, which had the total capital of US $18.5mil Since then, Vietnam has welcomed 10 others with total capital exceeding US $1bil Together with foreign direct investment (FDI), foreign indirect investment (FII) has been making positive contribution to the economic development of Vietnam The investment of big international financial institutions in Vietnam‟s stock market has continuously grown over the past time 56 http://www.institutionalinvestor.com/Article/1356891/HISTORY-The-World-As-We-Found-It.html 57 Murat Binay,“Performance Attribution of US Institutional Investors”, 2005 121 Appendix Definition and classification of institutional investors  Definition of institutional investors “An institutional investor can be defined as a fiduciary entity established to manage client assets with full investment discretion”58  Institutional investors classification  Based on legal entity type: Institutions can be classified into five categories: - Banks and bank trust departments: manage personal trust funds and contracted pension assets - Insurance companies: invest their own property-casualty and life insurance funds - Investment companies (mutual fund families): managing money on behalf of fund holders - Investment advisors: are money management firms that exercise investment discretion on behalf of clients A significant portion of pension fund assets are managed by investment advisors In the world, Barclay's Bank PLC, Morgan Stanley Dean Witter and Goldman Sachs & Company are three of the largest - Endowments, public and corporate pension funds and philanthropic foundations: comprises university and private endowments, philanthropic foundations, funds that are managed in-house by private and public pension funds, and law firms acting as trustees  Based on trading taste, there are three categories of institutional investors: - “Transient” institutions: exhibit high portfolio turnover and own small stakes in portfolio companies They are attracted to companies with investor relations 58 Murat Binay,“Performance Attribution of US Institutional Investors”, 2005 122 activities geared toward forward-looking information and “news events,” like management forecasts, that constitute trading opportunities for such investors - “Dedicated” institutions: provide stable ownership and take large positions in individual firms They appear to be insensitive to the quality of disclosure - “Quasi-indexers”: also trade infrequently but own small stakes (similar to an index strategy) They are attracted to companies with “high-quality” annual and quarterly report disclosure 123 ... first is Quality of leadership and the second is the Quality of corporate governance Quality of leadership was represented in four main factors: 1) Quality of companies‟ vision; 2) Quality of company‟s... (FMCG), wholesale or retail with strong brand names In terms of utility industry, Vietnam‟s rapid industrialization and urbanization create big potentials for it The utility industry is essential and... Vietnam to its full potential Vietnam opened its first stock market in Ho Chi Minh City (HOSE, latter renamed HSX) in July 20th, 2000, followed by a the trading centre in Hanoi (HASTC, latter renamed