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Research Paper | Management | Vietnam | Volume 5 Issue 2, February 2016

The Impact of Director Board's Characteristics on Firm Value: A Study on HOSE

Duong Trong Nhan | Vo Thi Quy

Abstract: The study was conducted to estimate the impact of director boards characteristics on the firms value. In which, Tobins q presents for the firms value, and boards characteristics variables are dual role of CEO, numbers of female members, numbers of independent members, and CEOs ownership. The data was collected from the financial statements and annual reports of 101 non-financial companies listed on Ho Chi Minh Securities Exchanges (HOSE) during the period from 2008 to 2011. The data was processed by using STATA software with GLS regression technique. The regression results showed that CEOs ownership is the most important factor that impacts on the firms value. The second important factor impacting the firms value is numbers of independent member. Among the characteristics of directors board, CEOs ownership, the independent and size of the board of directors positively affect the firms value, while the dual role of chairman has negative effect to firms value. In addition, two other variables (ROA and Leverage) also affect positively to the firm value.

Keywords: Director Boards Characteristics, CEO Ownership, Tobins q, HOSE

Edition: Volume 5 Issue 2, February 2016,

Pages: 646 - 650

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