Determinants of Non-Performing Loans at Listed Banks in Vietnam: The Role of Board Structure

Abstract

This paper investigates the impact of board structure on the non-performing loans (NPLs) of 26 listed commercial banks in Vietnam over the period from 2013 to 2023. The authors employ panel data regression models, including Pooled Ordinary Least Squares (Pooled OLS), the Fixed Effects Model (FEM), and the Random Effects Model (REM), subsequently identifying REM as the most appropriate model. Furthermore, the Feasible Generalized Least Squares (GLS) method is applied. The findings reveal that the number of female board members, the return on assets (ROA), and the ratio of total operating expenses to total income have a positive impact on non-performing loans. Conversely, the return on equity (ROE) negatively affects the non-performing loans of the banks.