Board Composition and Corporate Risk-Taking in Vietnam

This study examines how board composition influences corporate risk-taking among Vietnamese non-financial listed firms from 2012–2023. Using Pooled OLS, Fixed Effects and two-step System GMM on 2,851 firm-year observations, the analysis evaluates four governance factors: board independence, board size, CEO duality and female representation. The results show that while larger boards, CEO duality and female directors significantly reduce risk-taking, board independence has the strongest positive effect. Ownership concentration and firm characteristics also play an important role. A further test using a pre-policy non-compliance indicator reveals that firms below the one-third independence requirement experience a stronger positive link between board independence and risk-taking, consistent with regulatory compliance pressure. This study contributes large sample evidence from an emerging market and offers policy insights for strengthening governance and promoting sustainable risk-taking.