Does the human capital of board directors add value to firms? Evidence from an Asian market

  • Tuan Nguyen, An Nguyen, Stuart Locke, Krishna Reddy
  • Cogent Economics & Finance, September 2017, Taylor & Francis
  • DOI: 10.1080/23322039.2017.1385439

Does baord of directors add value?

What is it about?

This paper investigates the effect of the human capital of directors on the financial performance of Vietnamese listed companies. The dynamic system generalized method of moments (system GMM) estimator is used to examine a panel dataset consisting of 315 firm-year observations over a four-year period from 2008 to 2011.

Why is it important?

This study, by applying a dynamic longitudinal modelling approach, extends the nascent literature on board human capital as well as more generally to the corporate governance literature by providing robust empirical evidence showing that the general human capital of board directors may add value to firms.


Dr Krishna Reddy
University of Waikato

We report that the human capital of directors appears to have a positive influence upon a firm’s financial performance. To the best of our knowledge, this study is the first work on the topic of human capital of directors and firm performance for publicly listed companies in Vietnam.

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The following have contributed to this page: Dr Krishna Reddy, Professor Stuart Locke, Dr. Tuan Nguyen, and Dr Krishna Reddy