Corporate Governance and Firm Performance: Evidence from Enterprises in the Food and Beverage (F&B) Industry Listed on the Vietnamese Stock Market

Abstract

Share wealth maximization is the ultimate goal of corporate management. Financial managers have taken various solutions to achieve this goal, and corporate governance is one of these solutions. The paper examines corporate governance's impact on the performance of enterprises in the food and beverage (F&B) industry listed on the Vietnamese Stock Exchange. The paper uses data samples of 27 enterprises of F&B in the period from 2010 to 2020 through panel data regression techniques, including Pooled OLS, FEM, REM, and GLS. The study uses return on total assets (ROA), return on equity (ROE), and market capitalization (Tobin'Q) for proxies of firm performance. The results show that the size of the board of directors (BODs), the percentage of independent members and the percentage of female members on the BODs, and the audit firm's reputation have a positive impact on the performance of F&B firms. In addition, while the size of the internal control committee and the Covid-19 pandemic harm the firm performance, the study also shows a nonlinear relationship between the percentage of foreigner share ownership and the firm performance.