Evidence on market to book value and firm performance a study of listed firms in vietnam

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - oOo - NGUYEN TUONG PHUONG EVIDENCE ON MARKET-TO-BOOK VALUE AND FIRM PERFORMANCE: A STUDY OF LISTED FIRMS IN VIETNAM MASTER THESIS Ho Chi Minh City – 2011 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - oOo - NGUYEN TUONG PHUONG EVIDENCE ON MARKET-TO-BOOK VALUE AND FIRM PERFORMANCE: A STUDY OF LISTED FIRMS IN VIETNAM MAJOR: FINANCE & BANKING MAJOR CODE: 60.31.12 MASTER THESIS INSTRUCTOR : DR TRUONG TAN THANH Ho Chi Minh City – 2011 ACKNOWLEDGEMENT I would like to expess my sincere gratitude to my instructor, Dr Truong Tan Thanh for guiding me throughout this thesis My appreciation to all of my teachers at Faculty of banking and finance, University of Econimics Hochiminh City for their teaching and guidance during my MBA course I would like to dedicate my deepest gratitude to my parents and my uncle for their support and encouragement i ABSTRACT This study tries to interprete the relationship between market to book value (a proxy of growth opportunity) and firm performance based on capital structure theory, tradeoff theory and costly external financing theory, and other studies relative to this topic The author uses cross-sectional data 2009 and 2010 of 70 listed companies in Vietnam to investigate the effect of market to book on firm‟s performance As the results of this study, price to book value is the important determinant of firm performance This finding supports the argument of Xu et al (2005), Fairfield (1994), Block (1995), Frank et al (2005) and Myers et al (1984) Firm leverage has significant and negative impact on firm‟s performance, which is consistent with the results of Modigliani and Miller (1958), Robichek and Myers (1966), Jensen and Meckling (1976), Frank et al (2005) Firm size has negative and significant correlation with firm‟s performance, which contrasts with Titan & Zeitun (2007) Beta has negative influence to market to book ratio This finding is consistent with Damodaran (2002), Myers and Majluf (1984), Baker and Wurgler (2002), Harris and Marston (1994) Firm performance in 2009 has positive influence to growth opportunity (Pb) in 2010 This result favours Damodaran (2002), Block (1995) Industry has influence to firm‟s performance Keywords: Market to book value, corporate performance, Vietnam, HOSE, HNX ii TABLE OF CONTENTS ACKNOWLEDGEMENT i ABSTRACT - ii TABLE OF CONTENTS iii LIST OF FIGURES iv LIST OF TABLES - v CHAPTER 1: INTRODUCTION - 1.1 BACKGROUND - 1.2 RATIONALE - 1.3 RESEARCH PROBLEMS 1.4 RESEARCH OBJECTIVE 1.5 RESEARCH METHODOLOGY AND SCOPE 1.6 STRUCTURE OF THE STUDY - CHAPTER 2: LITERATURE REVIEW 10 2.1 INTRODUCTION 10 2.2 CASHFLOW INTO EMERGING MARKETS - 10 2.3 PRICE TO BOOK VALUE - 12 2.4 FIRM PERFORMANCE 14 CHAPTER 3: RESEARCH METHOD 17 3.1 INTRODUCTION - 17 3.2 DATA - 17 3.3 RESEARCH METHOD 17 3.4 RESEARCH SAMPLE - 18 3.5 VARIABLES MEASUREMENT FOR MODEL - 19 3.5.1 Dependent Variables - 19 3.5.2 Independent Variables - 20 3.6 HYPOTHESIS AND EMPIRICAL MODEL - 24 3.7 SUMMARY 29 CHAPTER 4: EMPIRICAL RESULTS OF THE RESEARCH 30 4.1 INTRODUCTION - 30 4.2 CHARACTERISTICS OF RESEARCH SAMPLES - 30 4.3 DESCRIPTIVE STATISTICS - 31 4.4 QUANTILE ANALYSIS - 39 4.5 REGRESSION ANALYSIS - 43 4.5.1 Model 1: The firm performance model - 43 4.5.1.1 ROE as Firm Performance proxy 43 4.5.1.2 EB as Firm Performance proxy - 50 4.5.2 Model 2: The Market to Book model - 56 CHAPTER 5: CONCLUSIONS, RECOMMENDATIONS AND LIMITATIONS - 60 5.1 INTRODUCTION - 60 5.2 CONCLUSIONS 60 5.3 RECOMMENDATIONS - 62 5.4 LIMITATIONS 62 REFERENCES GLOSSARY APPENDIX A APPENDIX B iii LIST OF FIGURES Figure 1: Distribution of Sectors 31 Figure 2: Distribution of Market to Book and Leverage ratios - 38 iv LIST OF TABLES Table 1: Mid-cap property and casualty companies evaluation - Table 2: Summary of Statistics of Market to Book of other Countries in 2010 - 11 Table 3: Summary of Statistics of Return on equity of other Countries in 2010 - 11 Table 4: Summary of Variables for model 24 Table 5: Summary of Statistics and Correlation of the Variables for Year 2009 - 31 Table 6: Summary of Statistics and Correlation of the Variables for Year 2010 - 33 Table 7: Classification by ROE in 2009 - 39 Table 8: Classification ROE in 2010 40 Table 9: Classification by EB in 2009 40 Table 10: Classification by EB in 2010 - 40 Table 11: t-test for Two-Sample Assuming Unequal Variances - 42 Table 12: Estimate results using ROE and LTDTA in 2009 - 43 Table 13: Estimate results using ROE and LTDTE in 2009 44 Table 14: Estimate results using ROE and TDTE in 2009 45 Table 15: Estimate results using ROE and LTDTA in 2010 - 45 Table 16: Estimate results using ROE and LTDTE in 2010 46 Table 17: Estimate results using ROE and TDTE in 2010 47 Table 18: Estimate results using EB and LTDTA in 2009 50 Table 19: Estimate results using EB and LTDTE in 2009 50 Table 20: Estimate results using EB and TDTE in 2009 51 Table 21: Estimate results using EB and LTDTA in 2010 52 Table 22: Estimate results using EB and LTDTE in 2010 52 Table 23: Estimate results using EB and TDTE in 2010 53 Table 24: Estimate results for market to book using ROE 56 Table 25: Estimate results for market to book using EB - 57 Table 26: Estimate results using EB excluding two dummy variables - 58 Table 27: Summary of empirical results 60 v Market to Book and Firm Performance CHAPTER : INTRODUCTION 1.1 BACKGROUND The theory of the capital structure is important framework for studies of the correlation between capital structure and firm performance It suggests that in the determined target ratio, firm„s performance has positive correlation with debt financing ratio and reduce agency cost In contrast, when the debt ratio exceeds a certain level, firm‟s performance has negative correlation with leverage ratio due to that fact that benefits from the increase in borrowing less than the increase in agency cost Tran (2008) tested the relationship between capital structure and firm performance by using data sample of 50 non-financial companies in Ho Chi Minh Stock Exchange The results show that firm performance has negative correlation with capital structure when debt to equity ratio is more than 1.812; firm performance has positive correlation with capital structure when debt to equity ratio is less than 1.812 As stated that the MM theory1 is an important part in firm‟s financing policy In addition, tradeoff theory2 and costly external financing theory3 focus on a relation that price to book ratio plays in making financing decisions Therefore, the effect of price to book on firm performance is the focus of this thesis Damodaran (2002) provides evidence that the most important determinant of price to book value is return on equity, and investors should focus on the mismatch between return on equity and price to book Block (1995) argues that there is a good linear between price to book value ratio and earning to book value ratio (a proxy of profitability) Xu et al (2005) argue that growth opportunity has strong relation to firm‟s performance, which is measured by return on equity (ROE) Market to Book and Firm Performance There is a lack of empirical evidence on a relationship between market price to book value ratio and firm performance for Vietnam Accordingly, the first objective of this study is to examine possible correlation between firm‟s performance and market to book value Tran (2008) finds an insignificant correlation between growth opportunity and firm‟s performance for 50 nonfinancial companies in Ho Chi Minh Stock Exchange in September 2008 Thus, the second objective of this study is to examine the effect of growth opportunity, which is measured by market to book ratio, on firm‟s performance 1.2 RATIONALE This study contributes to literature in two directions: (1) by using ordinary least square regression model and quantile analysis to investigate the relationship between firm‟s performance and market to book; (2) by using different measure of firm‟s performance such as earning to book to investigate the impact of market to book on firm‟s performance to complement one more measure to return on equity ROE, return on asset ROA, tobin‟s Q of previous studies in Vietnam This study also finds a strong relationship between market to book and firm performance In practice, the mismatch between the market to book and firm performance proxied by return on equity (ROE) provides investors the market to book comparables approach The example as bellows shows the market to book comparables approach Market to Book and Firm Performance Table : Mid-cap property and casualty companies evaluation Price to book value Five Year Current year Forcasted ROE Beta 1996 1997 1998 1999 2000 average AFC 1.0 1.1 1.4 1.4 1.6 1.3 0.8 9.5% 1.10 AFG 1.5 1.5 1.6 1.2 1.0 1.4 1.0 13.5% 0.95 SAFC 1.2 1.2 1.1 0.8 0.9 1.0 1.1 10% 1.05 ORI 1.4 1.6 1.4 0.6 1.6 1.3 1.2 11% 0.90 2.2 11% Industry (Source: Morningstar; The Value Line Investment Survey for ROE forecasts) As the table shows, ORI is selling at PB of 1.2, which is 55 percent of the industry mean The current market to book of ORI is lower than market to book of previous years, and lower than five year average of 1.3 Forcasted return on equity of ORI equals industry mean, and higher than the other firms such as SAFC, AFC Beta is lower than the others Therefore, ORI is relatively undervalued with SAFC and AFC AFG is selling at PB of 1.0, which is 45 percent of the industry mean The current market to book of AFG is lower than market to book of previous years, and lower than five year average of 1.4 Forcasted return on equity of AFG is higher than the industry mean, and highest in all firms Beta is lower than the others such as SAFC, AFC Therefore, AFG is relatively undervalued with SAFC and AFC Market to Book and Firm Performance 12 Demsetz, Harold & Lehn, Kenneth, 1985 "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol 93(6), pages 1155-77, December 13 Gary B Gorton, Richard J Rosen, April 1995, " Banks and Derivatives", NBER Working Paper No W5100 14 Mehran, Hamid, 1995 "Executive compensation structure, ownership, and firm performance," Journal of Financial Economics, Elsevier, vol 38(2), pages 163-184, June 15 James S Ang, Rebel A Cole, James W Lin, " Agency Costs and Ownership Structure", Journal of Finance, Vol 55, No 1, February 2000 16 Saunders, Strock, and Travlos 1990, "Ownership structure, deregulation, and bank risk taking", Journal of Finance, Vol XLV, No.2, June 1990 17 A Cole, Rebel & Mehran, Hamid, 1998 "The effect of changes in ownership structure on performance: Evidence from the thrift industry1," Journal of Financial Economics, Elsevier, vol 50(3), pages 291-317, December 18 Randall Morck & Andrei Shleifer & Robert W Vishny, 1988 "Alternative Mechanisms for Corporate Control," NBER Working Papers 2532, National Bureau of Economic Research, Inc 19 McConnell, John J & Servaes, Henri, 1990 "Additional evidence on equity ownership and corporate value," Journal of Financial Economics, Elsevier, vol 27(2), pages 595-612, October 20 Himmelberg, C.P & Hubbard, R.G & Palia, D., 1997 "Understanding the Determinants of Mangerial Ownership and the Link Between Ownership and Performance," Papers 97-21, Columbia - Graduate School of Business 21 Tim Bollerslev & Hao Zhou, 2001 "Estimating stochastic volatility diffusion using conditional moments of integrated volatility, Journal of Financial Economics 62 (2001) 559–571 560 22 Allen N Berger, 2002 "The economic effects of technological progress: evidence from the banking industry," Finance and Economics Discussion Series 2002-50, Board of Governors of the Federal Reserve System (U.S.) 23 Pulak Mishra, Tamal Chandra 2010, "Mergers, Acquisitions and Firms‟ Performance: Experience of Indian Pharmaceutical Industry, Eurasian Journal of Business and Economics 2010, (5), 111-126 24 Abdel Shahid, S (2003) Does Ownership Structure Affect Firm Value? Evidence from The Egyptian Stock Market Working paper, (www.ssrn.com) Market to Book and Firm Performance 25 Rajan, R.G and L Zingales (1995) What Do We Know About Capital Structure? Some Evidence from International Data Journal of Finance, Vol L, No 5, pp 1421–60 26 Zeitun, R and Tian, G.G (2007) Capital structure and corporate performance: evidence from Jordan The Australasian Accounting Business & Finance Journal 1(4), 40-61 27 Wei Xu, Xiangzhen Xu, Shoufeng Zhang (2005) An Empirical Study on Relationship between Corporation Performance and Capital Structure China-USA Business Review 4(4), 49-53 28 Long Chen, Xinlei Shelly Zhao (2006), On the Relation Between the Market-to-Book Ratio, Growth Opportunity, and Leverage Ratio , AFA 2005 Philadelphia Meetings, Finance Research Letters, 3(2006) 253-266 29 Jensen, M C., & Meckling, W H (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure Journal of Financial Economics, 3(4), 303-360 30 Jensen, M C (1986) Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers The American Economic Review, 76(2), 323329 31 Aswath Damodaran, Investment valuation second edition, John Wiley & Sons 2002 Market to Book and Firm Performance GLOSSARY Modigliani and Miller (1958) states that in imperfect markets, the value of a firm does not depend on operating profit, but in terms of taxes, a company tends to use debt to increase the value by taking advantage of tax shields Howerver, the fact that company can not use 100% debt because of cost of debt This kind of cost reduces corporate profits and increases business bankruptcy cost when debt increases Robichek and Myers (1966) argue that the negative effect of bankruptcy costs on debt to prevent firms from having the desire to obtain more debt Jensen and Meckling (1976) emphasize the importance of the agency costs of equity in corporate finance arising from the separation of ownership and control of firms whereby managers tend to maximize their own utility rather than the value of the firms Long and Zhao (2006) apply tradeoff theory to show that for firms with low to medium market-to-book ratios, the benefits from borrowing exceeds external equity issuance, and firms make optimal decisions by borrowing more On the other hand, firms with high marketto-book ratios have high growth opportunities and thus preserving low target ratios becomes a major concern Long and Zhao (2006 ) apply costly financing theory to interpret that firms with low to medium market-to-book ratios not have much retained earnings and they follow the pecking order by using more debt especially when debt is cheaper High market-to-book ratio firms, on the other hand, can use more retained earnings or time the market by issuing highly valued equities Demsetz and Lehn 1985, Gorton and Rosen 1995, Mehran 1995, Ang, Cole, and Lin 2000 Saunders, Strock, and Travlos 1990, Cole and Mehran 1998 Morck, Shleifer, and Vishny 1988, McConnell and Servaes 1990, Mehran 1995, Himmelberg, Hubbard, and Palia 1999, Zhou 2001 Allen N Berger 2002 Market to Book and Firm Performance Pulak Mishra, Tamal Chandra 2010 Abdel Shahid, 2003 10 Myers et al (1984) states that high growth firms had a greater need for funds and therefore could be expected to borrow more 11 According to Baker and Wurgler (2002) a firm with a higher market-to-book ratio is more likely to issue equity because it faces relatively lower costs of external equity financing These lower costs could be due to lower adverse selection costs, or market mis-valuation that is not part of the future growth opportunities Market to Book and Firm Performance APPENDIX A Formulas of Variables Price to book value ratio Market price Book value per share Eearnings to book value Earning per share Book value per share Firm size Ln (Sales) Long-term Debt to Total Asset Long_term debt Total asset Long-term Debt to Total Equity Long_term debt Total Equity Total Debt to Total Equity Total Debt Total Equity Return on Equity net income available for shareholders number of shares outstanding Book value per share Total equity - value of prefered stock number of shares outstanding Earning per share Net income - Dividend of prefered Stock Number of shares outstanding Market to Book and Firm Performance APPENDIX B SAMPLES 2009 & 2010 DATA 2009 Ticker Company Industries EB ROE ln(PB) LTDTA LTDTE TDTE AAM Mekong Fisheries J.S.C Food Producers 0.18 0.17 0.15 0.025 0.029 0.1582 26.9962 0.94 ABT Bentre Aquaproduct Import And Export J.S.C Food Producers 0.31 0.21 0.29 ACL Cuulong Fish J.S.C Food Producers 0.28 0.03 0.34 AGC An Giang Coffee Joint Stock Company Food Producers 0.02 0.02 0.22 AGF An Giang Fisheries Import and Export J.S.C Food Producers 0.02 0.02 -0.41 0.0068 0.0131 0.9298 27.9978 1.07 ATA NTACO J.S.C Food Producers 0.28 0.28 0.76 0.0278 0.1078 2.8797 26.847 1.04 BBC Bibica Corporation Food Producers 0.11 0.11 -0.17 0.0764 0.1076 0.4081 27.2113 1.07 BHS Bien Hoa Sugar J.S.C Food Producers 0.28 0.28 0.23 0.1405 0.2902 1.0645 27.8161 0.89 BLF Bac Lieu Fisheries J.S.C Food Producers 0.01 0.01 -0.17 0.0819 0.3832 3.677 26.6409 1.24 10 CAN Halong Canned Food J.S.C Food Producers 0.14 0.14 -0.20 0.0622 0.1202 0.9284 26.7634 0.77 11 DBC Dabaco Viet Nam Corporation Food Producers 0.13 0.13 0.07 0.1667 0.3805 1.2623 28.1784 0.98 12 FMC Sao Ta Foods J.S.C Food Producers 0.09 0.09 -0.28 0.0008 0.0036 3.1003 27.6093 0.85 SIZE BETA 0.2192 27.0925 0.89 0.0527 0.1822 2.4539 27.3239 1.12 0 6.4618 28.4796 0.96 Market to Book and Firm Performance 13 HHC Haiha Confectionery Food Producers 0.17 0.17 0.04 0.0124 0.0204 0.6364 26.8604 0.87 14 HNM Ha Noi Milk Food Producers 0.08 0.08 0.06 0.0084 0.0116 0.3711 26.3427 1.03 15 HVG Hung Vuong Corporation Food Producers 0.17 0.17 0.58 0.0235 0.0519 1.1771 28.7792 0.75 16 ICF Investment Commerce Fisheries Corporation Food Producers 0.15 0.15 -0.03 0.017 17 KDC Kinh Do Corporation Food Producers 0.19 0.20 0.65 0.0317 0.0557 0.7309 28.309 0.88 18 LAF Long An Food Processing Export J.S.C Food Producers 0.20 0.20 0.17 0.0021 0.0044 1.0412 27.0408 0.98 19 LSS Lam Son Sugar Food Producers 0.23 0.23 0.56 0.0242 0.0345 0.4136 27.7772 0.92 20 MPC Minh Phu Seafood J.S.C Food Producers 0.21 0.22 0.71 0.1079 0.2205 0.9999 26.5304 0.99 21 MSN Masan Group Corp Food Producers 0.08 0.09 1.19 0.1049 0.1546 0.4089 29.0935 0.59 22 NGC Ngo Quyen Processing Export Food Producers 0.23 0.23 0.37 0.4154 1.4651 2.5266 25.5712 0.25 23 NKD North Kinhdo Food Food Producers 0.36 0.30 0.76 0.0569 0.1289 1.2659 27.3843 1.06 24 NSC National Seed J.S.C Food Producers 0.25 0.19 0.55 0.00254 0.0036 0.4303 26.3455 0.82 25 PIT Petrolimex International Trading J.S.C Food Producers 0.06 0.06 -0.42 0.0716 0.1611 1.2495 27.8695 0.95 26 SAF Safoco Foodstuff Food Producers 0.29 0.29 0.64 0.003 27 SBT Société De Bourbon Tay Ninh Food Producers 0.13 0.13 -0.04 0.0154 0.0173 0.1191 27.4169 0.97 28 SGC Sa Giang Import Export Corporation Food Producers 0.21 0.21 0.30 0.1688 0.2142 0.2684 25.4431 0.79 29 SJ1 Seafood J.S.C Food Producers 0.14 0.14 -0.01 0.0352 0.0495 0.4059 25.8412 0.84 0.0327 0.9206 26.8462 0.94 0.005 0.9212 26.6134 0.36 Market to Book and Firm Performance 30 SSC Southern Seed J.S.C Food Producers 0.29 0.29 1.14 0.0161 0.0215 0.3334 26.2973 0.72 31 TAC Tuong An Vegetable Oil Food Producers 0.09 0.09 0.44 0.1195 0.2616 1.1891 28.599 1.26 32 TH1 The Vietnam National General Export - Import No.1 J.S.C Food Producers 0.32 0.32 0.65 0.0753 0.2161 1.8686 27.7959 1.05 33 TS4 Seafood No J.S.C Food Producers 0.16 0.16 0.66 0.3226 0.6808 1.1103 26.3982 0.96 34 TSC Agricultural Supplying J.S.C Food Producers 0.15 0.15 0.35 0.0001 0.0005 3.8226 28.6023 1.03 35 VHC Vinh Hoan Corporation Food Producers 0.31 0.30 0.94 0.139 36 VNM Vietnam Dairy Products J.S.C Food Producers 0.36 0.36 1.37 0.0302 0.0386 0.2725 30.0466 0.84 37 HLA Huu Lien Asia Corporation Industrial Metals 0.23 0.24 0.45 0.0189 0.1029 4.3994 28.579 0.98 38 HMC HoChiMinh City Metal Corporation Industrial Metals 0.09 0.09 0.30 0.0528 0.1597 2.025 28.6751 1.00 39 HPG Hoa Phat Group J.S.C Industrial Metals 0.25 0.26 0.80 0.0536 0.1101 1.042 29.7454 1.12 40 HSG HOASEN Group Industrial Metals 0.20 0.20 0.92 0.5483 0.3562 1.5766 28.6817 1.12 41 KKC Produce and Trading Metal J.S.C Industrial Metals 0.35 0.35 0.56 0.0072 0.0162 1.2338 26.9281 0.93 42 NVC Nam Vang Corporation Industrial Metals 0.17 0.11 1.01 0.000002 0.0001 7.4223 28.6046 0.74 43 PHT Phuc Tien Trade-Manufacture J.S.C Industrial Metals 0.28 0.28 0.86 0.00038 0.0011 2.0684 27.5324 0.74 44 SMC SMC Trading- Investment J.S.C Industrial Metals 0.27 0.23 0.35 0.0222 0.1115 4.0094 29.3019 1.04 45 TKU Tung Kuang Industrial J.S.C Industrial Metals 0.25 0.25 0.12 0.00805 0.0183 1.2793 27.4546 0.71 46 VGS Vietnam Germany Steel Pipe J.S.C Industrial Metals 0.25 0.09 0.70 0.0578 0.1321 1.2601 27.7521 1.09 0.3238 1.2755 28.6716 0.73 Market to Book and Firm Performance 47 VIS Vietnam - Itaty Steel J.S.C Industrial Metals 0.51 0.51 0.39 0.3625 1.2366 2.4114 28.3652 0.79 48 DDM Dong Do Marine J.S.C Transportation 0.01 0.01 0.13 0.7462 8.6317 10.5672 26.5108 0.93 49 DVP Dinh Vu Port Investment And Development J.S.C Transportation 0.28 0.28 1.01 0.1991 0.3068 0.5407 26.3452 0.72 50 DXP Doan Xa Port J.S.C Transportation 0.49 0.49 0.98 0.0336 51 GMD Gemadept Corporation Transportation 0.12 0.13 0.33 0.2323 0.4242 0.7483 28.3196 1.15 52 HCT Hai Phong Cement Transport And Trading Transportation 0.08 0.08 -0.14 0.0024 0.0026 0.0714 24.6054 0.59 53 HTV Ha Tien Transport J.S.C Transportation 0.12 0.12 0.03 0.0034 0.0037 0.0924 25.4522 1.08 54 PJC Petrolimex Ha Noi Transportation and Trading J.S.C Transportation 0.42 0.16 0.70 0.1954 0.4718 1.4145 26.9946 0.75 55 PJT Petrolimex Joint Stock Tanker Company Transportation 0.08 0.08 0.02 0.0943 0.1357 0.4388 26.5633 0.94 56 PSC Sai Gon Petrolimex Transportation and Service J.S.C Transportation 0.18 0.18 -0.09 0.0075 0.0181 1.4047 27.4114 0.73 57 PTS Hai Phong Petrolimex Transportation and Services J.S.C Transportation 0.35 0.18 0.58 0.0415 0.0817 0.9664 26.2259 1.09 58 SFI Sea And Air Freight International Transportation 0.19 0.21 0.50 0.0045 59 TJC Transporation And Trading Services J.S.C Transportation 0.08 0.08 -0.46 0.5482 2.2577 3.1194 25.6953 0.76 60 TMS Transforwarding Warehousing Joint Stock Corporation Transportation 0.14 0.11 -0.02 0.1768 61 VFC Vinafco Joint Stock Corporation Transportation 0.07 0.07 -0.17 0.0235 0.0305 0.2959 26.7042 0.98 62 VGP The Vegetexco Port J.S.C Transportation 0.16 0.16 0.06 63 VIP Viet Nam Petroleum Transport J.S.C Transportation 0.06 0.06 0.62 0.04 0.1905 25.7907 0.97 0.009 0.9315 25.6015 1.01 0.238 0.3458 25.8865 0.69 0.1845 25.8357 0.58 0.4833 1.3262 1.7322 27.8365 1.08 Market to Book and Firm Performance 64 VNA VINASHIP J.S.C Transportation 0.06 0.06 0.11 0.3998 1.3552 2.3889 27.2986 1.07 65 VNL Vinalink International Freight Forwarders Transportation 0.20 0.20 0.48 0.0005 0.0006 0.1593 26.2393 0.81 66 VNT The Foreign Trade Forwarding and Transportation J.S.C Transportation 0.26 0.26 0.40 67 VSC Viet Nam Container Shipping J.S.C Transportation 0.34 0.36 0.82 0.0568 0.0853 0.5012 26.8986 0.94 68 VSG South Vietnam Container Shipping J.S.C Transportation 0.00 0.00 -0.28 0.6018 2.1086 2.5033 25.577 0.77 69 VST VITRANSCHART J.S.C Transportation 0.12 0.12 0.50 0.5899 3.3503 4.6785 28.0112 1.03 70 VTO Vietnam Tanker J.S.C Transportation 0.04 0.04 -0.01 0.5652 2.3629 3.1803 27.7888 1.05 0 1.2055 26.4588 0.73 Market to Book and Firm Performance DATA 2010 Ticker Company Industries EB ROE ln(PB) LTDTA LTDTE AAM TDTE SIZE BETA Mekong Fisheries J.S.C Food Producers 0.03 0.03 -0.15 0.0504 0.2425 3.8112 28.6997 1.71 ABT Bentre Aquaproduct Import And Export J.S.C Food Producers 0.05 0.06 -0.42 0.0018 0.0019 0.0458 24.7148 1.16 ACL Cuulong Fish J.S.C Food Producers 0.05 0.07 -0.38 0.1029 0.1979 0.9225 28.3887 1.67 AGC An Giang Coffee Joint Stock Company Food Producers 0.06 0.06 0.32 0.3109 0.5913 0.9004 26.8572 1.51 AGF An Giang Fisheries Import and Export J.S.C Food Producers 0.06 0.08 -0.73 0.008 0.0173 1.1712 28.2111 0.84 ATA NTACO J.S.C Food Producers 0.07 0.07 -0.25 0.4773 1.2886 1.6999 26.0275 1.39 BBC Bibica Corporation Food Producers 0.07 0.09 -0.30 0.4623 1.1743 1.5292 28.0323 1.69 BHS Bien Hoa Sugar J.S.C Food Producers 0.08 0.05 -0.18 0.2 0.3332 0.6151 28.5058 1.46 AGD Godaco Seafood J.S.C Food Producers 0.08 0.06 -0.01 0.0226 0.0506 1.2329 28.4278 1.3 10 NHS Ninh Hoa Sugar J.S.C Food Producers 0.08 0.08 -0.38 0.5156 1.5341 1.9742 27.9843 1.35 11 CAN Halong Canned Food J.S.C Food Producers 0.08 0.11 -0.30 0.0714 0.1052 0.4734 26.5199 1.31 12 DBC Dabaco Viet Nam Corporation Food Producers 0.08 0.08 -0.49 0.0402 0.0561 0.3921 27.4185 1.5 13 FMC Sao Ta Foods J.S.C Food Producers 0.09 0.05 -0.15 0.0117 0.0271 1.3021 27.3362 1.02 Market to Book and Firm Performance 14 HHC Haiha Confectionery Food Producers 0.09 0.08 -0.21 0.0001 0.0005 3.4455 28.5929 1.3 15 SEC Gia Lai Cane Sugar Thermoelectricity J.S.C Food Producers 0.09 0.12 -0.28 0 6.6216 28.4814 0.93 16 HVG Hung Vuong Corporation Food Producers 0.09 0.08 -0.37 0.001 0.0011 0.1144 25.6024 0.82 17 ICF Investment Commerce Fisheries Corporation Food Producers 0.11 0.12 -0.16 0.016 0.0475 1.7426 29.1894 1.26 18 KDC Kinh Do Corporation Food Producers 0.11 0.12 -0.15 0.4326 1.4535 2.3595 27.6285 1.31 19 LAF Long An Food Processing Export J.S.C Food Producers 0.12 0.13 0.14 0.0969 0.2575 1.6579 29.2327 1.71 20 LSS Lam Son Sugar Food Producers 0.12 0.13 0.28 0.004 0.009 1.0753 26.5916 1.48 21 MPC Minh Phu Seafood J.S.C Food Producers 0.13 0.13 0.03 0 0.4026 26.0268 0.43 22 MSN Masan Group Corp Food Producers 0.13 0.09 0.44 0.005 0.0099 0.976 23 NGC Ngo Quyen Processing Export Food Producers 0.14 0.12 0.07 0.0657 0.2359 2.5903 29.1115 1.61 24 NSC National Seed J.S.C Food Producers 0.14 0.11 0.05 0.2284 0.5177 1.2665 26.6733 1.88 25 PIT Petrolimex International Trading J.S.C Food Producers 0.14 0.11 -0.40 0.0109 0.0231 1.1037 26.4836 1.49 26 SAF Safoco Foodstuff Food Producers 0.14 0.16 -0.88 0.0253 0.0289 0.1454 26.9934 0.79 27 SBT Société De Bourbon Tay Ninh Food Producers 0.16 0.19 0.06 0.0134 0.0147 0.0935 27.7796 0.87 28 SGC Sa Giang Import Export Corporation Food Producers 0.16 0.14 0.49 0.03 0.0405 0.3171 28.5986 0.7 29 SJ1 Seafood J.S.C Food Producers 0.16 0.16 0.30 0.0897 0.1881 1.0957 27.0098 0.65 27.5055 0.37 Market to Book and Firm Performance 30 SSC Southern Seed J.S.C Food Producers 0.17 0.13 -0.02 0.5705 2.6792 3.6827 28.3618 1.55 31 TAC Tuong An Vegetable Oil Food Producers 0.17 0.19 0.20 0 4.3812 27.7187 1.24 32 TH1 The Vietnam National General Export - Import No.1 J.S.C Food Producers 0.17 0.16 -0.12 0.0006 0.0014 1.0139 26.0131 1.59 33 TS4 Seafood No J.S.C Food Producers 0.17 0.16 -0.58 0.001 0.003 2.0205 28.0306 1.13 34 TSC Agricultural Supplying J.S.C Food Producers 0.18 0.13 -0.08 0.0003 0.0006 0.9754 28.0718 1.55 35 VHC Vinh Hoan Corporation Food Producers 0.19 0.15 0.56 0.0139 0.0245 0.7563 26.9991 0.9 36 VNM Vietnam Dairy Products J.S.C Food Producers 0.20 0.21 0.31 0.0017 0.0027 0.4746 26.7003 0.57 37 HLA Huu Lien Asia Corporation Industrial Metals 0.20 0.16 -0.12 0 0.2794 26.0771 0.58 38 HMC HoChiMinh City Metal Corporation Industrial Metals 0.21 0.20 0.41 0.1617 0.2415 0.4935 25.8376 0.28 39 HPG Hoa Phat Group J.S.C Industrial Metals 0.21 0.19 0.49 0.0032 0.0091 1.8515 28.7639 1.91 40 HSG HOASEN Group Industrial Metals 0.21 0.23 0.45 0.1928 0.5613 1.8607 29.2844 1.01 41 KKC Produce and Trading Metal J.S.C Industrial Metals 0.21 0.19 0.13 0.0001 0.0001 0.2188 26.6727 0.89 42 NVC Nam Vang Corporation Industrial Metals 0.22 0.24 -0.32 0.0055 0.0066 0.1823 25.4207 0.68 43 PHT Phuc Tien Trade-Manufacture J.S.C Industrial Metals 0.22 0.17 0.24 0.0218 0.0512 1.3447 27.8568 0.71 44 SMC SMC Trading- Investment J.S.C Industrial Metals 0.23 0.19 -0.03 0.324 1.7864 4.5125 25.5155 0.14 Market to Book and Firm Performance 45 TKU Tung Kuang Industrial J.S.C Industrial Metals 0.23 0.15 0.01 0.0284 0.1291 3.5316 29.5629 1.26 46 VGS Vietnam Germany Steel Pipe J.S.C Industrial Metals 0.24 0.21 1.29 0.2724 0.5418 0.8453 29.6087 0.51 47 VIS Vietnam - Itaty Steel J.S.C Industrial Metals 0.25 0.21 0.28 0 0.3548 27.3267 0.65 48 TCL Tan Cang Logistics And Stevedoring J.S.C Transportation 0.25 0.16 0.39 0.0276 0.0623 1.2535 26.3724 1.19 49 DVP Dinh Vu Port Investment And Development J.S.C Transportation 0.25 0.23 0.37 0.0496 0.0967 0.8942 28.7564 0.5 50 DXP Doan Xa Port J.S.C Transportation 0.25 0.21 0.65 0.1362 0.3171 1.2762 30.3208 1.04 51 GMD Gemadept Corporation Transportation 0.25 0.23 0.29 0 1.4385 26.8782 0.51 52 HCT Hai Phong Cement Transport And Trading Transportation 0.26 0.24 0.32 0.0574 0.1466 1.5538 28.8136 1.78 53 HTV Ha Tien Transport J.S.C Transportation 0.28 0.29 0.55 0.0819 0.1501 0.7091 27.4095 1.55 54 PJC Petrolimex Ha Noi Transportation and Trading J.S.C Transportation 0.28 0.26 0.26 0.0269 0.0858 2.1802 27.7428 1.11 55 PJT Petrolimex Joint Stock Tanker Company Transportation 0.28 0.29 0.59 0.0042 0.0059 0.4282 27.2253 0.45 56 PSC Sai Gon Petrolimex Transportation and Service J.S.C Transportation 0.30 0.31 0.73 0.2779 0.5909 1.1263 26.4347 1.71 57 PTS Hai Phong Petrolimex Transportation and Services J.S.C Transportation 0.30 0.29 0.19 0.1134 0.2318 1.0439 28.3376 0.4 58 SFI Sea And Air Freight International Transportation 0.30 0.26 0.64 0.0016 0.0029 0.7557 26.7916 0.39 59 TJC Transporation And Trading Services J.S.C Transportation 0.33 0.30 0.43 0.0668 0.3208 3.804 27.3118 0.81 Market to Book and Firm Performance 60 HMH HAI MINH Corporation Transportation 0.33 0.33 0.34 0.0116 0.0174 0.5014 61 VFC Vinafco Joint Stock Corporation Transportation 0.34 0.25 0.19 0.042 0.0556 0.3117 27.9754 1.44 62 VGP The Vegetexco Port J.S.C Transportation 0.36 0.25 0.69 0.0201 0.0548 1.7235 27.1431 0.7 63 VIP Viet Nam Petroleum Transport J.S.C Transportation 0.36 0.24 0.62 0.0085 0.0108 0.2553 64 VNA VINASHIP J.S.C Transportation 0.36 0.35 0.74 0.1185 0.1555 0.3116 26.5883 0.62 65 VNL Vinalink International Freight Forwarders Transportation 0.40 0.23 0.33 0.2018 0.5682 1.8007 28.5745 1.27 66 VNT The Foreign Trade Forwarding and Transportation J.S.C Transportation 0.41 0.38 0.27 0.2547 0.4566 0.7927 26.837 67 VSC Viet Nam Container Shipping J.S.C Transportation 0.45 0.45 1.35 0.0152 0.0205 0.3526 30.475 0.36 68 STG South Logistics J.S.C Transportation 0.45 0.22 0.79 0.0614 0.1388 1.2598 27.4154 0.06 69 VST VITRANSCHART J.S.C Transportation 0.47 0.47 0.30 0.0017 0.002 0.2099 25.9949 0.48 70 VTO Vietnam Tanker J.S.C Transportation 0.47 0.34 0.29 0.0015 0.0022 0.4183 27.5635 1.61 27.105 0.63 26.481 0.66 ...MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - oOo - NGUYEN TUONG PHUONG EVIDENCE ON MARKET- TO- BOOK VALUE AND FIRM PERFORMANCE: A STUDY OF LISTED FIRMS IN VIETNAM. .. that 21 Market to Book and Firm Performance will flow into companies with high growth opportunities and causes PBV to increase In a bull market situation, lack of transparency of information and. .. (1985) use a sample of 511 firms from major sectors of the U.S economy, including regulated utilities and financial institutions and a sub sample of 406 manufacturing and mining firms during the