The impact of top management knowledge diversity on the financial performance of listed companies in Viet Nam: The moderating role of state ownership

Abstract

This study analyzes the impact of knowledge diversity within top management teams on the financial performance of listed companies in Viet Nam, while also examining the moderating role of state ownership. Using data from 299 companies during the period 2018- 2022, the results indicate that diversity in educational level positively influences financial performance of listed firms, whereas diversity in educational background exerts a negative effect. Nationality diversity does not show a statistically significant impact. A key contribution of this study lies in clarifying the moderating role of state ownership in the relationship between knowledge diversity characteristics and financial performance. Specifically, state ownership weakens the positive effect of tenure diversity and amplifies the negative effect of educational background diversity. Based on these findings, the study proposes several managerial implications such as enhancing the professional qualifications of top management team members, carefully considering the inclusion of individuals with different educational backgrounds, encouraging diversity in tenure, and paying special attention to the role of state ownership in designing an appropriate management structure to improve financial performance of listed firms on the stock market.