Board characteristics, state ownership and firm performance: evidence from Vietnam

Abstract

This paper investigates the association between board characteristics and firm performance and examine whether such relationship is moderated by different levels of ownership concentration among Vietnamese listed firms from 2008 to 2014. A series of fixed effect panel regressions was employed to test the impact of ownership concentration on corporate governance-firm performance relationship. The results indicate that the impact of an effectiveness of corporate governance mechanism on firm performance is influenced by the different levels state ownership. The evidence of this study suggests that corporate governance system that is beneficial for other developed markets may not be a good fit for emerging markets. Corporate governance policies in Vietnam are in the process of being reformed, and the results, thus, will provide insights for regulatory bodies by helping them better understand corporate governance practices.