The objective of this study is to estimate the effects of boards on internationalization of listed firms on Vietnamese stock market; particularly the effects of board size, nationality diversity of board and non-executive directors on internationalization. In addition, this study also estimates the moderating effects of duality of the CEO and the chairman of the boards on the relationship between boards and internationalization of listed firms in Vietnam. A detailed panel data set of firms listed on the Hanoi stock exchange for the period from 2009 to 2018 are employed to test the proposed hypotheses. REM regression results reveal that board size negatively affects internationalization; whereas, the effect of nationality diversity of board on internationalization is positively. The results also reveal that the internationalization of firms with high nationality diversity of board governed by CEO with the duality of the chairman is lower than that of those managed by CEO without duality. Our findings integrate the arguments of Agency Theory and Resource-based view applied in transition economy that emphasized internationalizing listed firms acquire certain benefits from boards, and the separation of the two highest positions in such firms facilitates the exact anticipation of uncertainties and risks in making internationalization decisions.

Keywords: Internationalization, Board of directors, Duality, Transition economy.