Corporate Governance and Bank Performance: Empirical Evidence from Vietnamese Listed Banks

Do national culture and board attributes influence corporate investment decisions?

“…Do and Phan (2013) analyse the relationship between corporate governance and a firm’s investment decision. They took a sample of 77 non-financial firms listed at the Vietnam Stock Exchange from the period of 2006 to 2011.…”

“…Cormier et al (2010) also found a negative relationship between BS and firm performance. Do and Phan (2013) Independent directors are individuals with no financial interests in the corporation (Chen et al, 2016). Hence, they can bring independent and objective judgement on various corporate matters to the board.…”

Towards a Multi-theoretical Approach on the Board and Firm Performance Relationship

“…Research on board-firm performance in Vietnam has not been able to provide a consensus answer as to whether, and which characteristics of the board can improve firm performance. For instance, some studies found board independence placing a positive impact on firm performance [11,12], yet other studies found this relationship to be negative [13,14], or not statistically significant [15]. Similarly, board size, duality, gender diversity are found to increase firm performance in some studies [7,16]; yet, they are found to reduce firm performance or place no significant effect in other studies [7,15,17].…”

“…For instance, some studies found board independence placing a positive impact on firm performance [11,12], yet other studies found this relationship to be negative [13,14], or not statistically significant [15]. Similarly, board size, duality, gender diversity are found to increase firm performance in some studies [7,16]; yet, they are found to reduce firm performance or place no significant effect in other studies [7,15,17]. These inconsistent findings might be attributed to several reasons, ranging from the lack of theoretical foundation in most of the prior empirical research, the heavy reliance on Agency Theory proposition, to the less rigorous in research design and data analysis.…”