Title: The mitigation of agency problem by using corporate governance in emerging markets: evidence from Vietnam

Authors: Duy Thanh Nguyen; Thanh Hai Huyen Truong

Addresses: Becamex Business School, Eastern International University, Nam Ki Khoi Nghia Street, Hoa Phu Ward, Binh Duong New City, Binh Duong, Vietnam ' Faculty of Economics, Thu Dau Mot University, No. 6 Tran Van On Street, Phu Hoa Ward, Thu Dau Mot City, Binh Duong, Vietnam

Abstract: The paper examines the impact of ownership structure and board characteristics on firm performance in Vietnam. Obtaining a sample of 300 non-financial companies listed on Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX) from 2014-2018, the paper reveals the positive impact of foreign and CEO ownership on firm performance, while state ownership, board independence, board gender diversity, and CEO duality yield negative impact due to various institutional factors. This paper also addresses some limitations in term of statistical models in the previous papers, providing more valid and reliable findings. Consequently, several implications have been proposed for company management and regulatory authorities.

Keywords: board composition; ownership structure; firm performance; agency problem; emerging markets.

DOI: 10.1504/AAJFA.2022.123070

Afro-Asian Journal of Finance and Accounting, 2022 Vol.12 No.2, pp.143 - 164

Received: 08 Apr 2020
Accepted: 29 Jul 2020
Published online: 26 May 2022 *

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