The impact of firm’s life-cycle on board composition: Evidence from Vietnam's listed firms

Abstract

We examine the impact of the firm’s life-cycle on board composition of Vietnam's listed firms. The data is balanced and covered over the period 2012-2018 for 442 Vietnam listed firms. We use a fixedeffects regressions analysis to examine the effect of a firm's life-cycle (Lifecycle), and dummy variables of firm's life-cycle (Growth, Mature, Decline) on the board composition (board size, board independence, CEO duality). Our findings show the board composition of Vietnam’s listed firms tends to decrease with the firm's life-cycle. Therefore, the firms need to adjust board composition to a proper level promptly to improve their competitiveness, and consider the supervisory function of the board members is not enough positive in the life-cycle of the firms.