Effect of age and education level of board of directors on firms’ financial performance

Abstract

This study uses data of 27 real estate companies listed on Vietnam's stock market (including HNX and HOSE), the variables included in this study which are variables related to profit, to consider their impact on the financial performance of the businesses. Research results show that foreign members of the board of directors (BOD) have a negative impact on the ratio of net return on assets (ROA); the age of the BOD members has the favourable effect on the firms' net return on equity (ROE). Also, corporate dividends have a positive impact on both ROA and ROE, while financial leverage has the same direction as ROE. In addition, this study does not find any linkage among the number of BOD members, the education level of BOD member, and the firm size to the firms' financial performance.