The Impact Of The Board Characteristics On Stock Return Volatility Evidence On Listed State-Owned Enterprises In Vietnam Before And After The Covid-19 Pandemic

Abstract

This research examines the impact of the number of governance directors and the independent directors on the stock market volatilities. The research especially concentrates on publicly traded companies in Vietnam that are owned by the state. The report specifically examines the unique difficulties presented by the COVID-19 epidemic and analyzes a sample of 57 SOEs were traded on the Vietnam stock exchange market in the period of six years (2017 – 2022). The investigation utilized various robustness metrics, which included OLS regression with OLS robust, FGLS, and PCSE techniques. The paper seeks to evaluate the complex association between governance characteristics and equity market performance during the enormous disruptions created by the global pandemic, using a comprehensive empirical investigation. The study reveals a constant detrimental effect of both the board’s dimension and board’s autonomy on the volatility of stock returns. This effect persists both before and beyond the onset of the COVID-19 epidemic. The findings represent a substantial contribution to the understanding of organization governance processes in public enterprises, offering vital insights for policymakers, investors, and the government board. The objective of this study is to elucidate the complex relationships between board composition, non-executive board, and volatile stock returns within the framework of the COVID-19 epidemic. Its objective is to provide guidance to decision-makers in developing strategies to ameliorate the resilience and stability of listed SOEs