The Impact of Independent Directors on Firm Performance on the Vietnamese Stock Market

Tran Thi Thuy Linh

Chapter 5 in The Vietnamese Economy and the Fourth Industrial Revolution, 2026, pp 109-136 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter aims to study the impact of independent directors (IDs) on firm performance on the Vietnamese stock market using both marketbased performance measures (Tobin’s Q ratio and EVA) and accountingbased ratios (ROA and ROE). The chapter analyzed the balance data of 80 firms on the Ho Chi Minh Stock Exchange from 2015 to 2018 with the Generalized Method of Moments (GMM). We find that the independent directors (PERIND) have an impact on firm performance with ROA and ROE. Besides, the effect of independent directors (NIND) adds value to the firm performance with ROA, ROE, and Tobin’s Q or performance as long as they are the minority on a board of listed companies in Vietnam. The stewardship theory, the agency theory, and Enterprise Law 2014 (guidelines on independent directors) were used to analyze the impact of IDs on the performance of Vietnamese firms. This study provides additional evidence to the literature regarding the relationship between independent directors (IDs) and firm performance.

Keywords: Vietnamese Economy; Fourth Industrial Revolution; Marketing; Behavioral Economics; Tourism; Management; Consumer Behavior; Ethical Leadership; Female Leadership; Work Motivation; Microfinance; Remittances; Digital Transformation; Business Management Strategies; Globalization; Industrialization (search for similar items in EconPapers)
JEL-codes: P2 (search for similar items in EconPapers)
Date: 2026
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