The moderating effect of firm size on the relationship between corporate governance and firm performance

The purpose of the study is to evaluate the moderating effect of firm size on the relationship between corporate governance and the financial performance of enterprises listed on the Vietnam Stock Exchange in the period 2007 to 2020. The study uses the panel data regression methods such as pooled OLS, FEM and REM, and the feasible generalised least squares (FGLS) for corrections of the defects; it is evident that the listed companies are generally influenced by the government's policies, there is a possibility of cross-sectional relationship among enterprises, especially large-scale enterprises that are likely to significantly influence on smaller enterprises, the panel-corrected standard errors should be performed to evaluate this effect. The research results show that the positivity of the board of directors promotes the business to be financially efficient, and this effect increases in larger enterprises. Furthermore, board education has a positive effect on firm profitability, and this effect becomes larger in large firms and smaller in smaller firms. The study also confirms that enterprises in favouring of debt and inflation all have a negative impact on financial performance.