The effect of board characteristics on bank performance - The case of Vietnamese commercial banks

Abstract

The purpose of this research is to look at the effects of board characteristics on bank performance in Vietnam during the period of 2015 to 2019. In particular, there are statistically positive connections between board characteristics including board size, board annual meeting, independent member, busy directors, old directors, female directors and bank performance. It is found that the larger the bank size, the higher ROA, ROE, pre-provision profit, and NPL are because the larger banks have higher information standards and are more well-known to find more sources of funds. Nonetheless, there is no evidence in the report that there is a link between the percentage of female directors and bank performance. According to Qi Liang, Pisun Xu, Pornsit Jiraporn (2013), they showed that different size of bank would have the regulatory changes of influences. Moreover, their result proved that large banks, board size were negative correlated with bank performance (ROA) , annual board meeting and percentage of independent directors were positive correlated with bank performance (ROA) in the Chinese market. In this research, we will find out the correlation of board characteristics with bank performance