Examining the role of board subcommittees in driving financial performance: CEO duality as a moderator

Abstract

This study aims to analyze the impact of board subcommittees (BS) on the financial performance (FP) of listed companies in the Vietnamese stock market from 2012 to 2023. It also investigates the moderating role of Chief Executive Officer duality (CEOD) in the relationship between BS and FP. Using panel data from 229 listed firms with 2,748 observations, the study applies Ordinary Least Squares (OLS), Fixed Effects Model (FEM), and Random Effects Model (REM). The most appropriate model is selected based on Generalized Method of Moments (GMM) tests. The findings indicate that BS significantly influences FP. Furthermore, CEOD plays a moderating role in this relationship, especially through profitability indicators. These results suggest that firms should strengthen the design and operation of BS and establish appropriate monitoring mechanisms when the Chief Executive Officer (CEO) holds concurrent positions to reduce excessive concentration of power and improve governance effectiveness.