Corporate Governance and Firm Performance: The Influence of Board Structure and Ownership Concentration

Abstract

In order to better understand the complex relationship between corporate governance and firm performance, this study focuses on the effects of ownership concentration and board composition. The research uses a dataset of 177 Vietnamese listed companies from 2008 to 2012 and a variety of empirical techniques, such as Feasible Generalized Least Squares (FGLS), to examine the relationship between particular governance variables and performance metrics like return on equity (ROE) and return on assets (ROA). The results show that the CEO's dual function and company performance are significantly positively correlated, whereas board independence has conflicting results. Furthermore, the relationship between ownership concentration and performance results is complex, suggesting that there are structural variations in its influence. By emphasizing the critical role that ownership dynamics and board characteristics play in improving a company's financial performance, this research adds to the larger conversation on corporate governance and provides insightful information for governance practitioners and policymakers.