The Impact of non-executive directors on operational performance of food production enterprises in Vietnam

Abstract

Corporate governance is being acknowledged by almost all kinds of business communities and firms as an ultimate driver to improve the firm financial performance. This study examined the association between corporate board structure and corporate financial performance using regression linear model. Principles of corporate governance deliver an explicit board structure for the purpose to facilitate the board members, which helps in making good decisions. The board of directors consists of the CEO, the chairman, the internal directors, and the external non-executive directors to work for the shareholders. This study undertakes different corporate governance attributes including non-executive directors, age, gender, experience, board size, and examines its effect on firm performance using ROA, ROA. The findings show that most of the governance variables are endogenous by nature. Results are consistent with agency theory. This study provides the theoretical and empirical evidence to better explain the association between corporate board structure and corporate firm performance in listed food production firms in Vietnam