Corporate governance: An empirical study on board structure and performnace of listed companies in Vietnam
Abstract
This paper explores the link between corporate governance and the performance
effectiveness among Vietnam’s listed companies, especially, the effect of board structure
and firm performance. The time scale for this research is in 2012 and the sample
consisted of 100 companies in Ho Chi Ming Stock Exchange (HOSE) and Ha Noi Stock
Exchange (HNX). A cross-sectional analysis is employed to examine the relationship
between corporate governance and firm performance. The performance measures applied
are ROA and Tobin’s Q. Different dimensions of board structure including board size,
board composition (independent director, female director, CEO-Chairman duality, board
ownership) and board activity.
Our empirical findings show that independent directors and board’s ownership
enhanced firm performance; the dual position of CEO and Chairman has a positive
relation with performance. Besides, board activity, firm size, state ownership and foreign
ownership play important roles in firm value. However, there is no significant impact of
board size, board gender and firm age on firm performance.