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Abstract
Abstract. This study was conducted to investigate the impacts of board and Chied Executive Officer characteristics on the financial stability of 25 Vietnamese commercial bank in the period 2015 - 2019. The GMM method is used to overcome the most extreme correlation between errors and endogeneity that ensure sustainable and effective estimates. The results of the study show that (i) most of the characteristics of the Board of Directors and CEO have a positive impact on the financial stability of banks. Except, the larger the CEO's ownership, the more unstable the banks are. (ii) In addition, when considering the simultaneous impact of the board and CEO characteristics, the study found a contradiction between the board and CEO characteristics in affecting the financial stability of banks. In particular, increasing the impact of the board size, the number of board meetings in the year, the percentage of members over 65 years old on the board and the ownership rate of the CEO led to an increase in the financial stability of banks. In general, these results lead to the proposal that the relevant banks should pay attention to the structure of the board and CEO characteristics according to the results of the study, especially limiting the ownership rate of CEOs in banks.
Keywords: Financial stability; Board characteristics; CEO characteristics; Z-score