Corporate Governance and Bank Performance: Empirical Evidence from Vietnamese Listed Banks

Corporate governance is considered to be one of the most critical factors influencing corporate performance. In the banking sector, corporate governance is important as banks play a specific role in the economic system by facilitating capital allocation and minimizing risk for businesses. Therefore, more and more studies focus on measuring the relationship between corporate governance mechanisms and corporates performance. This empirical study analyses the effect of corporate governance on the performance of listed banks in Vietnam from 2007 to 2017. The results indicate that audit quality and levrage have positive effects impact on bank performance while state-ownership and bank age negatively associated with bank performance. However, board independence and bank size have no impact on bank performance. This study adds to the limited number of studies on the corporate governance of banks in emerging economies.