tailieunhanh - Developing corporate governance index for Vietnamese banking system

The purpose of this paper is twofold. Firstly, propose a specific method with a detailed questionnaire with 60 questions, divided into five main components: Shareholders and general shareholders’ meeting; Board of directors; Supervisory board; Disclosure and transparency, auditing and Violations. Second, the method will then be applied to calculate the CGI for 40 Vietnamese commercial banks in three years 2010, 2011 and 2012. | International Journal of Financial Research Vol. 5, No. 2; 2014 Developing Corporate Governance Index for Vietnamese Banking System Tran Thi Thanh Tu1, Pham Bao Khanh2 & Phung Duc Quyen3 1 VNU University of Economics and Business, Hanoi, Vietnam 2 Deposit Insurance of Vietnam, Ha Noi, Vietnam 3 Vietnam Bond Market Association Bond Association, Vietnam Correspondence: Tran Thi Thanh Tu, VNU University of Economics and Business, Hanoi, Vietnam. E-mail: tuttt@ Received: March 14, 2014 doi: Accepted: April 6, 2014 Online Published: April 7, 2014 URL: Abstract The purpose of this paper is twofold. Firstly, we propose a specific method with a detailed questionnaire with 60 questions, divided into five main components: Shareholders and general shareholders’ meeting; Board of directors; Supervisory board; Disclosure and transparency, auditing and Violations. Second, the method will then be applied to calculate the CGI for 40 Vietnamese commercial banks in three years 2010, 2011 and 2012. To our best knowledge, this is the first time that a questionnaire has been designed and applied to construct the CGI for the Vietnamese banking sector. And thirdly, statistical analysis has been performed to examine the characteristics of the results obtained from the questionnaire. Keywords: corporate governance, Vietnamese banking, index 1. Introduction Corporate Governance can be defined as the system used to manage and control firms; it consists of a set of market and regulatory mechanisms which indicate how to manage accompany, including the relationships among different stakeholders and the objectives of the company. Research has demonstrated that financial institutions are critically important for economic growth and efficient capital allocation of the economy. In the rapidly growing economies of Vietnam, as in many other emerging markets, banks are set to play a crucial role. It