Does Board Social Network Affect Bank Performance — Evidence From Listed Banks in Vietnam

Abstract: Using a sample of 34 listed commercial banks in Vietnam from 2010 to 2020, we explore the impact of board social networks on bank performance. We find a significant positive relationship between educational ties and family ties and bank performance and a significant negative relationship between professional ties, business ties and state ties on bank results. Therefore, the bank performance can be improved when the board connection with inside companies is greater than three business groups or state companies and the number of connections inside the board is less than ten members. We also find a positive and significant relationship between board connection outside (between three and five business groups or state companies) on next-two-year bank performance. Likewise, the board connection inside between ten and eighteen ties will also enhance the next-two-year bank performance.

Key words: board social network, bank performance, U-shape relationship

JEL codes: G21, G38, G4