Board of Directors and Financial Reporting Quality in Vietnam Listed Companies

Abstract

This article studies the impact of the Board of Directors (BOD) on financial reporting quality (FRQ) in Vietnam listed companies. The research uses FEM, REM and GLS regression models, data collected at energy enterprises listed on the stock market in Vietnam from 2010 - 2018, with 2162 observations. The research results have found that the BOD size, BOD independence, BOD chairperson cum CEO has a positive impact on FRQ while BOD meeting frequency has a negative impact on FRQ. In addition, the audit quality, the ratio of liabilities has a positive impact on FRQ while company size has a negative impact on FRQ. Further, the percentage of female BOD members does not have an impact on FRQ. Empirical research results serve as a useful basis for enterprises to improve FRQ by considering of factors of the board of director in a more effective manner.