Do Board Size and Board Members Matter to the Internationalization of Listed Firms on the Hanoi Stock Market?
Main Article Content
Abstract
This study estimates the effects of board size and director board composition on the internationalization of listed firms on the Hanoi stock market (HNX). The data collected from the HNX listed enterprises’ annual reports in the period 2009-2018 are employed to test the proposed hypotheses. The REM regression results reveal that the bigger the size of the board, the lower the internationalization. We, however, also find that boards with foreign members are positively and significantly associated with listed firms’ internationalization. We fail to confirm the relationship between non-executive directors and firm internationalization. Based on those results, some managerial implications are proposed in this study.
Keywords:
Internationalization, board size, director board, listed firms, Hanoi stock market.
References
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[18] H.L. Chen, "Independent Directors’ Capital and Firm Internationalization", Asian Economic and Financial Review Journal, 4 (10) (2014) 1378–1388.
[19] M.A. Hitt, L. Tihanyi, T. Miller, B. Connelly, "International diversification: Antecedents, outcomes, and moderators", Journal of Management, 32 (6) (2006) 831–867.
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[3] H.L. Chen, C.Y. Chang, W.T Hsu, "Does Board Co-Working Experience Influence Directors’ Decisions Toward Internationalization?", Management International Review, 57 (1) (2017) 6592.
[4] J.L. Rivas, "Diversity & internationalization: The case of boards and TMT’s", International Business Review, 21 (1) (2012) 1–12.
[5] M.C. Jensen, W.H. Meckling, "Theory of the firm: Managerial behavior, agency costs and ownership structure", Journal of Financial Economics, 3 (4) (1976) 305–360.
[6] J. Barney, "Firm resources and sustained competitive advantage", Journal of Management, 17 (1) (1991) 99–120.
[7] J. Johanson, J.E. Vahlne, "The Internationalization Process of the Firm - A Model of Knowledge Development and Increasing Foreign Market Commitments", Journal of International Business Studies, 8 (1) (1977) 23–32.
[8] L.P.C. Sánchez, M.M.V. Periñán, C.B. Castro, "The board of directors and international decision-making", Esic Market Economics and Business Journal, 44(3) (2013) 59–81.
[9] H.D. Sherman, R.J. Kashlak, M.P. Joshi, "The effect of the board and executive committee characteristics on the degree of internationalization", Journal of International Management, 4 (4) (1998) 311–335.
[10] J.H. Lai, L.Y. Chen, S.C. Chang, 'The board mechanism and entry mode choice", Journal of International Management, 18 (4) (2012) 379–392.
[11] P. Caligiuri, M. Lazarova, S. Zehetbauer, "Top managers’ national diversity and boundary spanning. Attitudinal indicators of a firm’s internationalization", Journal of Management Development, 23 (9) (2004) 848–859.
[12] N. Pisani, A. Muller, A., P. Bogăţan, "Top Management Team Internationalization and Firm-level Internationalization: The Moderating Effects of Home-region Institutional Diversity and Firm Global Focus', Journal of International Management, 24 (3) (2018) 239–256.
[13] B.B. Nielsen, S. Nielsen, "Top management team nationality diversity and firm performance: A multilevel study", Strategic Management Journal, 34 (3) (2013) 373–382.
[14] J.F. Hair, W.C. Black, B.J. Babin, R.E. Anderson, R.L. Tatham, "Multivariate data analysis", In vectors (6th ed.). Pearson Prentice Hall, Upper Saddle Riverm, NJ (2006).
[15] L. Oxelheim, A. Gregorič, T. Randøy, S. Thomsen, "On the internationalization of corporate boards: The case of Nordic firms", Journal of International Business Studies, 44 (3) (2013) 173–194.
[16] H. Kang, M. Cheng, S.J. Gray, "Corporate governance and board composition: Diversity and independence of Australian boards", Corporate Governance: An International Review, 15 (2) (2007) 194-207.
[17] P. Greve, T. Biemann, W. Ruigrok, "Foreign executive appointments: A multilevel examination", Journal of World Business, 50 (4) (2015) 674–686.
[18] H.L. Chen, "Independent Directors’ Capital and Firm Internationalization", Asian Economic and Financial Review Journal, 4 (10) (2014) 1378–1388.
[19] M.A. Hitt, L. Tihanyi, T. Miller, B. Connelly, "International diversification: Antecedents, outcomes, and moderators", Journal of Management, 32 (6) (2006) 831–867.