Title:
THE IMPACT OF THE BOARD OF DIRECTOR CHARACTERISTICS AND OWNERSHIP STRUCTURE ON VIETNAMESE BANK PERFORMANCE

Authors:
Hung M. Pham*, Thu H. T. Nguyen, Viet Nam

Abstract:

This paper aims to investigate the impacts of the board of director characteristics and ownership structure on bank performance in Vietnam from 2013 to 2017. In detail, there are statistically significantly positive relationships between the share of foreign investor on board and bank performance proxied by ROA, ROE and NIM. Also, the outcome shows that larger board drives bank profitability to increase in the case of NIM. However, CEO duality has a significantly negative influence on NIM, referring to agency theory. It is presented that because listed commercial banks have more standards regarding information and are more well-known to find more sources of funds, these banks have higher ROA, ROE, and NIM than non-listed ones. Nevertheless, the paper has no evidence of the relation among the percent of female and institutional investors on board and bank performance.