Board Characteristics and Non-Performing Loans: A Case of Vietnamese Commercial Banks

Abstract

The article determines the impact of board characteristics on the non-performing loans ratio of 30 Vietnamese commercial banks in the period 2012–2020. Variables representing the characteristics of the board chatacteristics of commercial banks include board members who represent state shareholders, board size, board independence, CEO duality, and female members. By using the SysGMM method, the results show that board independent and female members have an impact on the non-performing loans ratio of Vietnamese commercial banks. However, the study did not find strong evidence of the existence of a relationship between the Board members who represent state shareholders, board size, CEO duality, and the non-performing loans ratio.