The Duality, Working Experience Of Boards’ Members And Roles Of Growth Opportunities To Firms Performance

• Main Authors: Võ Hồng Đức, Phan Bùi Gia Thủy
• Format: Article
• Language: Vietnamese
• Published: TẠP CHÍ KHOA HỌC ĐẠI HỌC MỞ THÀNH PHỐ HỒ CHÍ MINH 2020-10-01
• Series: Tạp chí Khoa học Đại học Mở Thành phố Hồ Chí Minh - Kinh tế và Quản trị kinh doanh
• Subjects: quản trị công ty; quyền kiêm nhiệm; cơ hội tăng trưởng
• Online Access: https://journalofscience.ou.edu.vn/index.php/econ-vi/article/view/1083
• ISSN: 2734-9306; 2734-9578

Current practice at Vietnam’s listed firms indicates that the duality has been in existence in which the chief executive officer (CEO) has also served in the role of the board’s chairman. In addition, working experience of board’s members has also positively contributed to firm’s performance. Empirical studies in Vietnam had only presented evidence on the relationship between the duality of the CEO, experience of boards’ members and firms’ performance. This empirical study is the first of its kind to quantify this relationship in the context of different growth opportunities among firms. Using the Feasible General Least Square (FGLS) approach on the sample of 77 listed firms in Ho Chi Minh City Stock Exchange for the period of 6 years from 2006 to 2011 inclusive, the key findings from this study are as follows. First, the duality of the CEO has positively related to firms’ performance. Second, the interaction between growth opportunities and the duality, working experience of boards’ members is found to have provided effects to firms’ performance. Based on these findings, listed firms in Vietnam should reassess their positions in the market to form an appropriate structure of the boards of directors.