JED, Vol 14, No.2, August 2012, pp. 72-95 | DOI: 10.33301/2012.14.02.04
Corporate Governance and Performance in Vietnamese Commercial Banks
Abstract:The issue of corporate governance has been increasingly popular in recent years. Corporate governance is considered to be one of the most critical factors influenc- ing firm performance and in banking sector it is particularly important as banks play a specific role in the economic system through the way it facilitates capital allocation and help minimize risk for businesses.
This paper is aimed at filling the gap by presenting the issue of bank corporate governance in terms of both theoretical framework and empirical study. In the the- oretical framework, the research provides readers with the fundamental aspects of corporate governance in general and bank corporate governance in particular with two popular frameworks. The empirical study presents a selection of banks for the sample and uses econometric models to test the effect of several corporate gover- nance variables on bank performance. From the result of the reseach, it has been found out that the number of members in Board of Director and the ratio of Capital Adequacy have great influence on the performance of the Vietnamese commercial banks.
Keywords:Bank performance, board size, capital adequacy ratio, corporate governance, board composition.