Impact of corporate governance on corporate risk- taking of listed companies on Vietnam stock market

Abstract

The study investigates how corporate governance’s internal factors impacts on the risk- taking
degrees of Vietnamese listed companies. The researcher employed analyses of panel data and testing
pooled least squares model, fixed effects model, random effects model, performed testing and selected
appropriate models, checked the defects and fixed the defects of the selected model using the feasible least
estimator method. The data used in this study are collected from corporate governance reports and financial
statements of companies listed on the Vietnamese stock market from 2010 to 2021. The study shows that:
Board size, duality, foreign ownership and owned by the board of directors have a positive impact on the
level of risk- taking of Vietnamese listed enterprises; State ownership and the independence of the board
of directors have a negative effect on the risk- taking of Vietnamese listed companies. Research results are
consistent with agency theory and other empirical studies. The researcher provides recommendations for
corporate governance in relation to the risk- taking of listed Vietnamese companies.