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The Monitoring Role Of Non-Executive Directors In Vietnam From A Return-Volatility Perspective

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Listed:
  • Anh Tho To
  • Quoc Tuan Tran
  • Thi Siem Tran
  • Kim Phong Thai
  • Thi Thu Hong Ho

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.

Suggested Citation

  • Anh Tho To & Quoc Tuan Tran & Thi Siem Tran & Kim Phong Thai & Thi Thu Hong Ho, 2020. "The Monitoring Role Of Non-Executive Directors In Vietnam From A Return-Volatility Perspective," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(224), pages 29-52, January –.
    • Handle: RePEc:beo:journl:v:65:y:2020:i:224:p:29-52
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    More about this item

    Keywords

    Corporate governance; non-executive director; firm risk;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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