Corporate governance and firm performance in Vietnam: The moderating role of digital transformation

This study examines the interplay between corporate governance mechanisms and firm performance in the Vietnamese context, with a particular focus on the moderating role of digital transformation. Utilizing a sample of 150 Vietnamese firms in 2023, the study employs a GMM approach to analyze the relationship between board characteristics (size, independence, duality, gender diversity, meeting frequency, and nationality diversity), digital transformation, and firm performance, proxied by ROA, ROE, and EPS. The findings reveal that board size and CEO duality positively influence firm performance. Notably, the positive impact of gender diversity on performance is amplified by digital transformation. While digital transformation exhibits a standalone positive effect on performance, its moderating role on other governance mechanisms is mixed. These results underscore the importance of effective corporate governance practices, particularly in the context of digital transformation, for enhancing firm performance in the Vietnamese market.