DIVERSIFICATION AND PERFORMANCE OF LISTED SECURITIES FIRMS IN VIETNAM: THE MODERATING ROLE OF THE COVID-19 PANDEMIC

This study examines the effects of income and investment diversification on the performance of securities companies in developing countries. Using a sample of 32 listed Vietnamese firms from 2014 to 2023 and the Feasible Generalized Least Square (FGLS) estimation, the study reveals that companies with more diversified income and investments exhibit lower financial performance. This investigation extends to testing the moderating role of the COVID-19 pandemic on this relationship. The findings suggest that the pandemic mitigated the negative impact of income diversification on performance, while exacerbating the negative influence of asset diversification. Additionally, this study identifies significant correlations between Board and CEO characteristics, firm-specific factors, inflation, and securities firm profitability. Based on these results, this study provides valuable recommendations for securities companies and regulators to reduce the negative impact of diversification and boost financial results.