The Effect Of Board Independence On Corporate Investments Of Non-Financial Firms Listed In Ho Chi Minh Stock Exchange (HOSE)

Abstract

This thesis studies the impact of board independence on corporate investments of non-financial companies listed on HOSE. For empirical analysis, this study examines the financial data of 344 public companies listed between 2018 and 2022, corresponding to 1552 firm-year observations. After using the Fixed effect model, the results show that the independent board has a negative impact on corporate investments. In addition, other firm-specific factors such as operating cash flows and financial leverage have a positive effect on corporate investments, whereas the remaining factors including growth opportunity, firm size, sales, and profitability are not statistically significant, hence they have no significant impact on corporate investments.