The paper examines the impact of corporate governance on performance of Vietnamese banks. The Corporate Governance Index has been used to evaluate corporate governance of Vietnamese banks in the period of 2010-2012. | Asian Social Science; Vol. 10, No. 9; 2014 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education Testing the Relationship between Corporate Governance and Bank Performance – An Empirical Study on Vietnamese Banks Tran Thi Thanh Tu1, Nguyen Hong Son1 & Pham Bao Khanh2 1 VNU University of Economics and Business, Vietnam 2 Deposit Insurance of Vietnam, Vietnam Correspondence: Tran Thi Thanh Tu, VNU University of Economics and Business, Vietnam. E-mail: tuttt@ Received: March 13, 2014 doi: Accepted: March 25, 2014 Online Published: April 29, 2014 URL: Abstract The paper examines the impact of corporate governance on performance of Vietnamese banks. The Corporate Governance Index has been used to evaluate corporate governance of Vietnamese banks in the period of 2010-2012. The return on equity and return on assets have been used to measure the bank performance. It is found that there is a significant gap between actual practices of corporate governance of Vietnamese banks and the international principles, a statistically significant difference in corporate governance of listed banks and non-listed banks in Vietnam. Better corporate governance is associated with better performance. The authors also have found the positive correlation of disclosure, the role of board of directors, shareholders and shareholder meetings with bank performance in Vietnamese banks. The relationship between supervisory board and bank performance has not been found. These findings lay a foundation for policy makers to make necessary changes to improve corporate governance ( role of Board of directors, disclosure and shareholder issues) of banks in Vietnam in the current restructure of the banking system. Keywords: corporate governance, disclosure, bank performance, board of director 1. Introduction The Vietnam banking system has experienced many changes since 2008. The change in .
