Corporate governance and performance in Vietnamese commercial banks. The issue of corporate governance has been increasingly popular in recent years. Corp orate governance is considered to be one of the most criticalf actors inf luenc- ing firmperf ormance and in banking sector it is particularly important as bank. | Journal of Economics and Development Vol. 14, , August 2012, pp. 72 - 95 ISSN 1859 0020 Corporate Governance and Performance in Vietnamese Commercial Banks Dao Thi Thanh Binh Hanoi University, Vietnam Email: binhdtt@ Hoang Thi Huong Giang Hanoi University, Vietnam Email: hoanggiang@ Abstract The issue of corporate governance has been increasingly popular in recent years. Corporate governance is considered to be one of the most critical factors influencing firm performance and in banking sector it is particularly important as banks play a specific role in the economic system through the way it facilitates capital allocation and help minimize risk for businesses. This paper is aimed at filling the gap by presenting the issue of bank corporate governance in terms of both theoretical framework and empirical study. In the theoretical framework, the research provides readers with the fundamental aspects of corporate governance in general and bank corporate governance in particular with two popular frameworks. The empirical study presents a selection of banks for the sample and uses econometric models to test the effect of several corporate governance variables on bank performance. From the result of the reseach, it has been found out that the number of members in Board of Director and the ratio of Capital Adequacy have great influence on the performance of the Vietnamese commercial banks. Keywords: Bank performance, board size, capital adequacy ratio, corporate governance, board composition. Journal of Economics and Development 72 Vol. 14, , August 2012 1. Introduction scenario to examine the determinants of success from a corporate governance viewpoint. Nowadays, corporate governance is a subject of paramount importance and utmost popularity. It is popular because recent scandals have proved that today’s “state-of-the-art” mode of governance is indeed inadequate. If corporate governance is essential to the success of almost any
