Board characteristics, board responsibilities and firm performance : Evidence from Vietnam's stock market

Abstract

This thesis examines the relationship between Responsibilities of Board and firm performance. To examine mentioned relation, we develop an instrument to assess the Board responsibilities practices that Based on the Asean corporate Governance Scorecard which revised OECD Corporate Governance Principles. My sample includes 100 firms listed on HOSE and HNX stock exchange. Based on the extant literature, I develop a conceptual framework and a set of hypotheses to examine the relationship between board Responsibilities and firm performance. This thesis also follow Empirical analysis is undertaken by authors Yan-Leung Cheung, J.Thomas Connelly, Piman Limpaphayom, Lynda Zhou from Chulalongkorn University, Thailand and City University of Hong Kong. The findings of the study show that board responsibilities were positively related with market based firm performance. On that Background, the authors offer research model includes independent variables and control variables, There is one explanatory variable which is the responsibility of the Board and five control variables are firm size, financial leverage, board size, age of the Board of Directors and the Number of women in the Board, All explanatory and control variables are included in the analysis in order to determine the extent of their influence on the firm performance through three dependent variable is ROE, ROA and MBratio. The findings of the study show that board responsibilities were also positively related with Market based firm performance, but there are no relation between Board responsibilities and accounting based firm performance. The study contributes to the understanding how important board-Responsibilities in corporate governance and its influence on firm performance, therefore author recommend solutions to improve responsibilities of the board as well as corporate governance practices in Vietnam. The findings of my thesis are expected to stimulate scholars for further research to identify the Relation between board responsibilities and firm performance.

Keywords: corporate governance, firm performance, Board responsibilities, the board of directors ,