| Author | Do Xuan Truong |
| Call Number | AIT RSPR no. SM-01-78 |
| Subject(s) | Executives--Salaries, etc.--Vietnam
|
| Note | A research study submitted in partial fulfillment of the requirements for the
degree of Master of Business Administration, School of Management
|
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-01-78 |
| Abstract | The agency problem refers to the incompatibility of interest between managers and owners of a
firm. The agency problem was particularly serious in the Vietnamese SOEs as a result of the lack
of mechanisms for aligning interests of managers and owners. The ambiguity of the state
ownership and the absence of a long-term strategic perspective further intensify the se1iousness
of the agency problem in these enterprises.
The equitisation (the Vietnamese version of privatisation) program created the grounds for
reducing the agency problem, intentionally by having better practices in management
compensation. However, it was not certain whether the equitised companies will change and
whether their practices are different from those of SOEs. A survey was conducted in the
framework of this study to verify this issue.
The survey collected data from 50 SOEs and 32 equitised companies. It revealed a mixed result.
Generally, even after changing the ownership, the newly equitised enterprises have not fully, if
not at al, broken up with their traditional practices in management compensation although some
of them were changing in paying their managers. In few cases, those who are pioneering of
management compensation only introduces better methods of management compensation on a
trial basis. However, they did not show a significant difference from the SOEs in the ways they
pay their managers. It is suggested that the equitised companies may need more time to install a
new, market-oriented system of management compensation in order to overcome the agency
problem and ultimately boost their efficiency. |
| Year | 2001 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-01-78 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Quang, Truong; |
| Examination Committee(s) | Sununta Siengthai ;Stoessel, Hans; |
| Scholarship Donor(s) | The Government of Switzerland/
Swiss Development Cooperation (SAV) ; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001 |