Board characteristics and firm performance
Abstract
Board characteristics is an important aspect of corporate profitability that managers of every
firm must understand in order to maximize firm’s value. To clarify this, I have conducted on
my own a study investigating the relationship between board characteristics and firms’
performance taking sample of 142 firms listed on HOSE over the period 2010-2013.
Variables taken to test this relationship include return on asset (ROA) and return on equity
(ROE) used as dependent variable; independent director (ID), the board’s size (BSIZE),
board’s education level (BEDU), board’s experience (BAGE) used as independent variables
and firm size (SIZE), current ratio (CR), leverage (LEV) and growth rate (GROWTH) used as
control variables.
The result of this study is not as expected, the relationship between dependent variable and
independent variable are not causality in both of measurement by ROA and ROE. The reason
maybe from the problem of data, all of data was import manually and from securities website,
so the data may different than reality. Or the issues in Viet Nam have some unique factor that
can not explain or some other reason. But, the result of relationship between control variable
and dependent variables is significant