Version 1
: Received: 5 October 2022 / Approved: 6 October 2022 / Online: 6 October 2022 (09:22:17 CEST)
How to cite:
Nguyen, V. C.; Huynh Thi Ngoc, T. Characteristics of the Board of Directors and Corporate Financial Performance – An Empirical Evidence. Preprints2022, 2022100060. https://doi.org/10.20944/preprints202210.0060.v1
Nguyen, V. C.; Huynh Thi Ngoc, T. Characteristics of the Board of Directors and Corporate Financial Performance – An Empirical Evidence. Preprints 2022, 2022100060. https://doi.org/10.20944/preprints202210.0060.v1
Nguyen, V. C.; Huynh Thi Ngoc, T. Characteristics of the Board of Directors and Corporate Financial Performance – An Empirical Evidence. Preprints2022, 2022100060. https://doi.org/10.20944/preprints202210.0060.v1
APA Style
Nguyen, V. C., & Huynh Thi Ngoc, T. (2022). Characteristics of the Board of Directors and Corporate Financial Performance – An Empirical Evidence. Preprints. https://doi.org/10.20944/preprints202210.0060.v1
Chicago/Turabian Style
Nguyen, V. C. and Thuan Huynh Thi Ngoc. 2022 "Characteristics of the Board of Directors and Corporate Financial Performance – An Empirical Evidence" Preprints. https://doi.org/10.20944/preprints202210.0060.v1
Abstract
The objectives of the research are to investigate the characteristics of the board of directors on the financial performance of the enterprise. Using a sample data from 52 construction and real estate enterprises listed on Vietnam stock exchange in the period 2006-2020. Using typical regression methods such as pooled OLS, FEM, REM and assessing the defects of the research model, the FGLS method is selected. At the same time, due to the existence of endogenous phenomena and the nature of interdependence among enterprises in Vietnam, research using the instrumental variables two-step generalized method of moments (IV-GMM) in order to correct for cross-sectional dependence, autocorrelation, endogeneity, and heteroskedasticity in the analysis. Research results suggest that board size, female board members, meeting frequency, and board members' education have a positive influence on financial performance. Moreover, the independence of the Board of Directors increases, the business efficiency decreases. The research also found a positive relationship of tangible fixed assets, and a negative relationship between capital structure choice, firm size and corporate financial performance.
Keywords
Impact; board of directors; endogeneity; cross-sectional dependence; firm performance
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
