This paper investigates the effect of investments in subsidiaries, joint ventures and affiliates (affiliate investment) on firm growth. Using both static and dynamic panel data models with a sample dataset of 2,056 firm-year observations on Vietnam’s stock market from 2008-2015, the study finds that increasing affiliate investment in prior periods had a significantly positive impact on asset growth and net income growth (but not sales growth) of the firms in subsequent periods. | Investments in subsidiaries joint ventures affiliates and firm growth Evidence from Vietnam Accounting 6 2020 Contents lists available at GrowingScience Accounting homepage ac Investments in subsidiaries joint ventures affiliates and firm growth Evidence from Vietnam Hoang N. Phama and Baliira Kalyebarab aVictoria University Melbourne Australia b American University of Ras Al Khaimah United Arab Emirates CHRONICLE ABSTRACT Article history This paper investigates the effect of investments in subsidiaries joint ventures and affiliates affiliate Received March 7 2020 investment on firm growth. Using both static and dynamic panel data models with a sample dataset of Received in revised format March 2 056 firm-year observations on Vietnam s stock market from 2008-2015 the study finds that 10 2020 increasing affiliate investment in prior periods had a significantly positive impact on asset growth and Accepted May 8 2020 Available online net income growth but not sales growth of the firms in subsequent periods. In addition the study May 8 2020 finds new empirical evidence that private-controlled firms are more efficient than government- Keywords controlled firms in terms of affiliate investment. It is also found that profitability government Affiliate investment ownership and foreign ownership are significant dynamics for firm growth. This research sheds light Firm growth on the role of affiliate investment as a corporate diversification strategy to boost firm growth including Controlling ownership growth rates of multinational corporations. It also provides important implications about the Corporate diversification determinants of different dimensions of firm growth in the context of an Asian emerging economy. Vietnam 2020 by the authors licensee Growing Science Canada 1. Introduction The relationship between investment and firm growth provides important implications for the theory of the firm and the study of the determinants of firm .
