BOARD CHARACTERISTICS AND FIRM PERFORMANCE: A COMPARATIVE ANALYSIS OF STATE AND PRIVATE ENTERPRISES IN VIETNAM

Abstract

This study investigates the effects of board characteristics on firm performance in Vietnam, highlighting the differences between state-owned and private enterprises during 2009–2023. Using the System GMM estimator to address potential endogeneity in panel data, the results reveal heterogeneous impacts across ownership types. For state-owned enterprises, board size, board members’ nationality, and sales growth exert positive influences on ROA, whereas firm age shows a negative effect. In contrast, within private firms, gender, nationality, education level, independence of board members, firm age, inflation, and board meeting frequency negatively affect performance, while board age, GDP growth, and gender–education diversity contribute positively. These findings underscore the distinct governance mechanisms between state and private sectors and suggest the need for tailored policies regarding board composition, human resource development, and corporate governance practices in Vietnam.