THE MONITORING ROLE OF NON-EXECUTIVE DIRECTORS IN VIETNAM FROM A RETURN-VOLATILITY PERSPECTIVE

Anh Tho To, Quoc Tuan Tran, Thi Siem Tran, Kim Phong Thai and Thi Thu Hong Ho

Economic Annals, 2020, vol. 65, issue 224, 29 - 52

Abstract: This study examines the relevance of board independence to stock return volatility for a sample of 160 compa-nies listed on the Vietnamese stock market over ten years (2008–2017). After control-ling for potential endogeneity, we find that the presence of non-executive directors on the board tends to increase firm risk. The results indicate that non-executive direc-tors do not play a supervisory role under the agency theory. Our findings remain ro-bust when we apply alternative measures of the dependent variable.

Keywords: Corporate governance; non-executive director; firm risk (search for similar items in EconPapers)
JEL-codes: G34 M10 (search for similar items in EconPapers)
Date: 2020
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