Climate change business strategy: The moderating impact of board of directors with foreign experience on firm performance

Abstract

This study investigates how climate change business strategies influence the firm performance of 28 publicly listed commercial banks in Vietnam, and how board members' foreign experience moderates this relationship. Grounded in the Natural Resource-Based View (NRBV) and Upper Echelons Theory, we employ bootstrap quantile regression and feasible generalized least squares to account for heterogeneity and robustness in estimation. The results reveal that stronger climate change strategies are positively associated with firm performance, with the effect amplified when boards include members with foreign experience, particularly foreign education. These findings contribute to the literature on green finance and corporate governance in frontier markets, and offer practical guidance for policymakers, regulators, and banking executives seeking to align profitability with environmental responsibility.