The impact of corporate governance mechanism on firm performance - Evidence from Vietnamese stock market
Abstract
Corporate governance has a crucial impact on the operation of a firm as well as the national economy. Several studies in many countries have been conducted to analyze this issue. There is a limited literature in Vietnam where the definition of corporate governance was just announced public few years ago. Hence, it is necessary to implement an examination of if corporate governance influences Vietnamese listed firms’ performance. This paper emphasized on the benefits of corporate governance and find out what features of the board of directors which represent the most crucial determinant of corporate governance. As well as, the impact of these features on performance of firm will be proved. A panel data for 69 companies from 2011 to 2014 on the Ho Chi Minh Stock Exchange and Ha Noi Stock Exchange is the sample for this study. The finding shows that boards of lager size and with CEO duality and less frequency of meeting associated with better financial performance. Meanwhile, the proportion of independent directors in the board makes no difference in this regard.