Effects of Corporate Governance on the Performance of Private Economic Groups in Vietnam

Using the unique combined dataset of three previous surveys, this paper examines theeffects of corporate governance on the performance of large private enterprises in Vietnam. Five measures of corporate governance and three variable proxies for performance areemployed to investigate effects of corporate governance on performance. Estimated resultsshow that Chair-CEO duality positively correlates with better performance, and increasing thesize of the board of directors is negatively associated with worse performance regardless ofperformance measures. These empirical effects are the same across sectors, export and import–related enterprises, and between female and male CEO enterprises. Independence of theboard has no link to performance of enterprises. Such results contribute to the extantliterature by providing empirical evidence and shedding light on understanding the effects ofcorporate governance on the performance of large private enterprises in Vietnam