The Impact of Ownership Structure on Financial Performance: The Mediating Role of Tax Avoidance in Vietnam

This study examines how ownership structure influences the financial performance of non-financial listed firms in Vietnam during 2020–2024, with tax avoidance as a mediating factor. Drawing on agency and information asymmetry theories, we apply Structural Equation Modeling to analyze the effects of state, institutional, foreign, and managerial ownership. Results show that institutional and managerial ownership significantly improve firm performance (ROA), both directly and indirectly through tax avoidance, while state and foreign ownership have no significant effect. Mediation analysis confirms that tax avoidance serves as a modest but statistically significant channel linking ownership structure to short-term profitability. Among the control variables, leverage reduces performance while firm size consistently enhances it. Overall, the study provides new and timely evidence from an emerging market and offers important policy implications for governance reform, ownership restructuring, and improved tax transparency.