The role of independent directors in jont-stock companies

Abstract

One of the corporate governance literature's major concerns is on the role of independent directors-IDs in relation to firm performance and value. This issue gains much attention from scholars, policy makers as well as management teams regarding governance practices at firm level. In general, empirical evidence in the literature shows a critically important role of IDs on the effectiverness of corporate governance practices. However, whether IDs play effectively their role in companies with blockholders or where the State holds controlling stakes of the companies still remains questionable. This paper examines how the presence of IDs impact on company performance and value, discussing this issue in the context of public shareholding and listed companies in Vietnam