Determinant on the ability to set up subcommittees under the board of directors in listed firms on the Vietnamese stock market

Abstract

The study was conducted to examine the determinants on the ability to set up subcommittees under the board of directors of listed firms on the Vietnamese stock market. The data was collected from 602 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) in the period of 2015 - 2017. Research results showed that institutional ownership and firm size have positive influences on the ability to establish sub-committees. However, the evidences indicated no statistical effect of board size, the proportion of foreign board members in the board, the percentage of non-executive board members, the performance of companies, companies audited by a Big 4 auditor and number of listed year on the likelihood of establishing subcommittees under the board of directors.