Abstract
By using the sample of 351 non-financial companies that were listed between 2010 and 2023 on the Ho Chi Minh City Stock Exchange, our study applies feasible generalized least squares (FGLS) to investigate the impact of board diversity, in terms of gender, nationality, and board independence, and financial constraints on firms’ investment efficiency. The findings reveal that financial constraints play a positive role in enhancing investment efficiency. Additionally, a higher proportion of independent directors on the board is associated with improved investment efficiency. The analysis further shows that the higher the proportion of women on the board of directors, the higher the firm’s investment efficiency tends to be. Conversely, the presence of foreign directors on the board negatively affects firms’ investment efficiency. These findings offer practical insights for firms in improving governance structures to support more efficient investment decisions. The findings suggest that increasing board diversity and reducing financial constraints can enhance investment efficiency and decision-making quality. These discoveries provide useful implications for managers, investors, and policymakers in promoting effective corporate governance practices.
Keywords: Board nationality diversity, financial constraints, independent directors, investment efficiency.
JEL classification: G3, G32, G11.
DOI: 10.63767/TCKT.34.2025.93.103
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Ban biên tập Tạp chí Kinh tế & Quản trị Kinh doanh
Phòng 514, Nhà điều hành, trường Đại học Kinh tế & Quản trị Kinh doanh
Địa chỉ: Phường Tân Thịnh, thành phố Thái Nguyên
Email: tapchikt-qtkd@tueba.edu.vn; Điện thoại: 0208.3903373
