Relationship between Gender Diversity on Boards and Firm’s Performance - Case Study about ASEAN Banking Sector

Tu, Tran Thi Thanh; Loi, Hoang Huu; Yến, Trần Thị Hoàng

doi:10.5430/ijfr.v6n2p150

Cited by 9 publications

(6 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In Vietnam's research field, the topic has not been explored properly. Tran (2015) found that the larger is the number of women who are top executive directors, the higher is the rate of return for the firm [6]. This study, however, is not directly relevant to the linkage between the share of women in the BOD and risk exposure at Vietnamese firms.…”

mentioning

confidence: 68%

Impact of women in the board of directors on business risk of Vietnamese firms

Linh¹,

Tran²,

Tran³

et al. 2016

EA-XXI

View full text Add to dashboard Cite

Abstract. This article aims at assessing the influence of women in the board of directors (BOD) on risk management in Vietnamese firms. The study touches upon a sample of 284 companies listed on the HOSE (Ho Chi Minh City Stock Exchange -Vietnam) in the period of [2008][2009][2010][2011][2012][2013][2014]. Their data was regressed by the random effects model (REM) and the fixed effects model (FEM). To find out which method is the most appropriate, we used the Hausman test. The study clarifies women's role in society and the optimal ratio of women in the BOD to minimise risks at enterprises. The authors give recommendations to corporate managers regarding proper employment policies, in which the role of women is better recognised. The most valuable result of the presented research is a grounded finding of an optimal female ratio in the BOD recommended for the Vietnamese enterprises. In order to achieve a positive impact of women on the risks reduction at the enterprise, the suggested female ratio in the BOD should be 34.96%, which will help to keep the lowest risk exposure. Hence, it could be recommended to raise a number of women in the BODs to approximately 1/3 of the total amount of members. Business owners may take this into account when planning human resource policies to maximise business performance. Keywords: Women; Board of Directors; Impact; Firm; Risk, HOSE; Vietnam; Gender JEL Classification: J44; M19 DOI: https://doi.org/10.21003/ea.V160-15До Хоаі Лін кандидат економічних наук, викладач, заступник завідувача кафедри банківського менеджменту, Школа банківської справи та фінансів, Національний університет економіки, Ханой, В'єтнам Тран Тронґ Фонґ магістр економіки, викладач, Школа банківської справи та фінансів, Національний університет економіки, Ханой, В'єтнам Тран Ван Банґ бакалавр економіки, президент клубу молодих банкірів, асистент навчально-консультаційного центру з банківської справи, фінансів та безпеки, Національний університет економіки, Ханой, В'єтнам Нґуен Сонґ Фуонґ бакалавр економіки, асистент навчально-консультаційного центру з банківської справи, фінансів та безпеки, Національний університет економіки, Ханой, В'єтнам Вплив жінок, які беруть участь у роботі ради директорів в'єтнамських фірм, на запобігання ризиковим подіям у бізнесі Анотація. Метою цієї статті є оцінка впливу жінок у складі рад директорів в'єтнамських фірм на запобігання ризиковим подіям у бізнесі. У дослідженні використано вибірку з 284 компаній, внесених до реєстру Фондової біржі Хошимін у період 2008-2014 років. У своїй роботі автори роз'яснюють роль жінок у суспільстві, а також надають пояснення щодо оптимального співвідношення жінок і чоловіків у раді директорів із метою мінімізувати виникнення ризикових подій на підприємствах. Доведено доцільність збільшення кількості жінок до 1/3 від загальної кількості членів ради директорів. Окрім цього, надано рекомендації корпоративним менеджерам стосовно вироблення належної політики у сфері зайнятості, яка робила би роль жінок у роботі підприємств більш вагомою. Ключові слов...

show abstract

mentioning

confidence: 68%

Impact of women in the board of directors on business risk of Vietnamese firms

Linh¹,

Tran²,

Tran³

et al. 2016

EA-XXI

View full text Add to dashboard Cite

show abstract

“…Similar to studies from developed markets, findings from emerging markets offer mixed results though a large number of empirical works show positivity between gender diversity and performance. While a number of studies from emerging markets (Julizaerma & Sori, 2012;Oba & Fodio, 2013;Shehata, 2013;Garba & Abubakar, 2014;Haldar, Shah & Rao, 2015;Jonty & Mokoteli, 2015;Tu, Loi & Yen, 2015;Oyewale, Oloko & Olweny, 2016;Hassan & Marimuthu, 2018; Lee-Kuen, Sok-Gee & Zainudin, 2017) report positive relationship, others (Yasser, 2012;Dabor, Isiavwe, Ajagbe & Oke, 2015: Kilic, 2015Abu, Okpeh, & Okpe, 2016;Solakoglu & Demir, 2016;Hassan & Marimuthu, 2018) indicate either none or negative association between the two variables. Several studies done in Malaysia on the relationship between gender diversity and performance have also reported positive results.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The study reported positive association between gender diversity and financial performance, suggesting the positive influence of female directors. Using five-year data from 70 largest banks in the ASEAN region, Tu et al, (2015) measured the impact of board diversity on performance measured by ROA and ROE. The study covered both Board of Management (BOM) and Board of Directors (BOD) of the subject banks.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of gender diversity on the financial performance of insurance firms in Kenya

Ibrahim¹,

Ouma²,

Koshal³

2019

IJRBS

View full text Add to dashboard Cite

The aim of this study was to examine the effect of gender diversity on the financial performance of insurance firms in Kenya. The study analyzed data from the 55 insurance firms licensed by the Insurance Regularity Authority (IRA) in Kenya. Gender diversity was operationalized by the number of female directors serving on the boards of insurance firms operating in Kenya. Primary data was collected from a sample of 412 board directors, Chief Executive Officers (CEOs), Chief Finance Officers (CFOs), Audit Committee members (AUDIND) and Internal Auditorsusing a questionnaire instrument while secondary data was retrieved from audited financial reports of the year 2017. Data were analyzed using descriptive and inferential statistics. Firm performance was measured by the two accounting-based measures Return On Assets (ROA) and Return On Equity (ROE). The findings from the regression analysis indicate that gender diversity significantly and positively affects the financial performance of insurance firms in Kenya.

show abstract

“…This research is not designed as conducted by prior studies (Allison et al ., 2023; Kuzey et al ., 2022; Naeem et al ., 2022), and some of the findings are mixed (Abdullah, 2014; Abdullah and Ismail, 2013; Carter et al ., 2010; Endraswati, 2018; Fathonah, 2018; González et al ., 2020; Marquez-Cardenas et al. , 2022; Mohammad et al ., 2018; Ramadhani and Adhariani, 2017; Thanh Tu et al ., 2015).…”

Section: Introductionmentioning

confidence: 99%

Gender diversity and firm performances suffering from financial distress: evidence from Indonesia

Abbas

Frihatni

2023

JCMS

View full text Add to dashboard Cite

PurposeThis paper aims to demonstrate gender diversity in the structure of corporate governance and test the effect of diversity on the firm performance suffering from financial distress.Design/methodology/approachThe paper is quantitative using a sample of 467 public firms in Indonesia. Data were analyzed into statistics descriptive and the hypothesis was tested using the test of logistic regression.FindingsThe preliminary results of the paper demonstrate the number of firms employing women and men in the structure of corporate governance of 13% on the commissioner board, 7% on the director board and 5% on the audit committee. Based on the test of effect, this paper further found that firms employing women and men (gender diversity) in the structure of the board of commissioners, tend to suffer from financial distress lower than firms only employing men (non-gender diversity).Research limitations/implicationsThis paper is not an effort to make the proportion of voices of women equal to men, however the representation of women at least exists in the structure of corporate governance as part of workforce diversity and inclusivity. In addition, this paper is considered not to use panel data with the purpose of avoiding repetitive data because of the use of a nominal scale in the logistic regression model.Practical implicationsThe finding of the paper is addressed to deliver insights into the current conversation on the issue of women's day with the theme of Each for Equal and to firms in positioning women in the structure of boardrooms.Originality/valueThis paper extends the limited scholarly work on the nexus between gender diversity and financial performance. The framework of social identity theory and the tenet of corporate governance are elaborated to disclose the finding that firm shareholders tend to benefit from gender diversity in the structure of the commissioner board.

show abstract

Relationship between Gender Diversity on Boards and Firm’s Performance - Case Study about ASEAN Banking Sector

Cited by 9 publications

References 11 publications

Impact of women in the board of directors on business risk of Vietnamese firms

Impact of women in the board of directors on business risk of Vietnamese firms

Effect of gender diversity on the financial performance of insurance firms in Kenya

Gender diversity and firm performances suffering from financial distress: evidence from Indonesia

Contact Info

Product

Resources

About