INTRODUCTION
Research background
The increasing presence of women in management roles has become a significant topic in recent years, with their contributions recognized as vital to enhancing business performance A 2022 Deloitte report, "Women in the Boardroom: A Global Perspective," highlights that many countries are implementing laws to ensure a greater representation of women on corporate boards, reflecting a global trend towards gender diversity in leadership positions.
In 2005, Norway pioneered gender quota legislation for public limited companies, mandating 40% representation of both males and females on corporate boards By the end of 2022, Spain also achieved a 40% gender quota, while the Netherlands implemented a 33% requirement in 2022 France has maintained a 40% gender representation since 2017, Belgium established a one-third quota in 2011, and India has required at least one woman on corporate boards since 2012.
In countries like Norway, Sweden, and France, the introduction of gender quotas and relaxed regulations has significantly increased the representation of women in leadership roles and boardrooms.
From 2011 to 2015, the representation of women on boards in STOXX Europe 600 companies nearly doubled, increasing from 13.9% to 25%, while the average board size remained unchanged (European Women on Boards, 2016) Additionally, a study of 10,493 companies across 72 countries revealed that the percentage of women on boards rose from 16.9% in 2018 to 19.7% in 2021 (Deloitte, 2021) This highlights the growing presence of women in top managerial roles, including board chairs, CEOs, and CFOs.
1 Global, D (2022) Women in the boardroom: A global perspective Seventh Edition
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2 improved from 5.3% to 6.7%, from 4.4% to 5.0%, and from 12.7% to 15.7% over three years from 2018 to 2021, respectively (Deloitte, 2021) 1
In East Asian nations like Vietnam, women's societal roles have long been misunderstood due to entrenched gender biases that confine them to family care However, recent advancements have significantly improved women's status both in households and society Women now occupy a wide range of professions, particularly in the commercial sector, contributing to economic growth In Vietnam, women represent 50.2% of the population and 48.3% of the labor force, highlighting their vital role in driving economic development, as outlined in the "National Strategy on Gender Equality for 2021."
By 2030, the percentage of female corporate directors and owners is expected to reach at least 30%, with a projection of 27% by 2025 Women currently manage a significant portion of small and medium-sized enterprises, employing over 1 million people (Mekong Business Initiative, 2016) These women-led businesses play a crucial role in job creation and significantly contribute to GDP through various sectors, including import-export, manufacturing, outsourcing, and logistics.
Despite Vietnam's notable advancements in gender equality, women still encounter numerous challenges, particularly in politics and economics Empirical studies suggest that women are often perceived as lacking the necessary qualities and skills for success compared to men Eagly and Johannesen-Schneider (2001) noted that women are frequently associated with traits like friendliness and a service-oriented mindset, which may hinder their progress in these competitive fields.
3 Anh, H T P., & Trang, N N H (2019) The impact of board gender diversity on company’s performance: Evidence from Vietnamese listed firms Dalat University Journal of Science, 9(1), 31-48
The General Statistics Office of Vietnam published the completed results of the 2019 population and housing census, providing comprehensive data on the country's demographic and housing conditions The findings are accessible through their official website, highlighting key insights into Vietnam's population dynamics and living standards For detailed statistics, visit the General Statistics Office's page dedicated to the census results.
The Resolution No 28/NQ-CP, issued by the Vietnamese government, outlines the National Strategy on Gender Equality for the period from 2021 to 2030 This strategic framework aims to promote gender equality and empower women across various sectors in Vietnam The resolution emphasizes the importance of creating policies that address gender disparities and foster equal opportunities for all genders For more detailed information, the full text can be accessed at LuatVietnam's official website.
The Mekong Business Initiative (2016) highlights the current state and challenges faced by women-owned small and medium enterprises (SMEs) in Vietnam It emphasizes the need for targeted solutions to support these businesses, which play a crucial role in the country's economic development The report outlines various strategies to empower women entrepreneurs, enhance their access to resources, and promote gender equality in the business landscape.
7 Eagly, A H., & Johannesen-Schmidt, M C (2001) The leadership styles of women and men Journal of social issues, 57(4), 781-797 h
3 rewardingness (best known as the performance-oriented model), and unfortunately, the latter is believed to be an essential trait of a genuine commander” Additionally, Kanter
(1977) 8 said onlookers tend to misrepresent the image of women executives by equating their image with femininity as opposed to the distinctive attributes of a leader
The relationship between women's leadership and business success is explored through agency theory and resource dependence theory, yet existing research yields mixed results While some studies indicate a positive correlation between female board members and corporate success, others suggest that gender diversity on boards may negatively impact business performance, with additional research failing to establish a definitive conclusion.
Recent trends in Vietnamese corporate boards highlight the need for a deeper understanding of women's leadership and its impact on company performance to enhance corporate governance and board effectiveness This study aims to empirically assess the relationship between women's leadership and the performance of Vietnamese enterprises by addressing a key research question.
How do women on the board of directors affect the performance of companies?
This dissertation demonstrates that organizations with a higher percentage of women in management positions achieve better financial performance than their counterparts It investigates the impact of female directors in the boardroom on overall company performance, aiming to provide actionable recommendations for enhancing corporate success.
The study examines the impact of gender diversity on corporate boards and its correlation with corporate performance in Vietnam, analyzing a sample of 618 listed companies, which includes 296 firms from the Hanoi Stock Exchange (HNX) and 322 firms from the Hochiminh Stock Exchange (HOSE).
8 Kanter, R M (1977) Some effects of proportions on group life In The gender gap in psychotherapy (pp 53-
Research necessity
Recent studies have explored the relationship between corporate governance variability and firm performance, yielding mixed results It is widely accepted that a company reflects its top management, making the characteristics and actions of senior leaders crucial in shaping corporate outcomes The impact of diversity on boards of directors is a contentious issue, with researchers presenting differing conclusions For example, Salloum et al (2016) found no positive correlation between female participation in Lebanese company management and financial success, while Madaleno et al (2019) reported that women on boards negatively affected financial performance in Indonesia Conversely, research on Portuguese and Spanish firms by Widhiastuti et al (2020) indicated that female board presence positively influences company performance.
There are also some studies on this issue in Vietnam such as Trang and Nhi
(2020) 12 looking at gender diversity based on the number and the proportion of female members on the Board of Directors; Thao, Nam and Anh (2015) 13 and Truong et al
In 2014, a study measured women's leadership by analyzing the percentage of female members in boardrooms Anh and Trang (2019) further categorized these female members into executive female directors and independent female directors, providing a more nuanced understanding of women's representation in leadership roles.
9 Salloum, C., Azzi, G., Mercier-Suissa, C., & Khalil, S (2016) The rise of women and their impact on company’s performance International Journal of Entrepreneurship and Small Business, 27(2-3), 213-246
10 Madaleno, M., Vieira, E S., & Teodósio, J P (2019) Corporate Female Leadership Effects Considering PSI20 and IBEX35 Companies' Performance In Handbook of Research on Women in Management and the Global Labor Market (pp 280-301) IGI Global
11 Widhiastuti, R., Kiswanto, K., & Jati, K W (2020) The Role of Women’s Leadership in Manufacturing Companies Listed on the Indonesia Stock Exchange The Indonesian Journal of Accounting Research
The study by Trang and Nhị (2020) explores the impact of female board members on the performance of publicly listed companies It highlights how gender diversity within corporate governance can enhance decision-making and drive better financial outcomes The findings suggest that companies with female directors tend to exhibit improved operational efficiency and strategic effectiveness, ultimately contributing to their overall success in the market This research underscores the importance of promoting gender equality in leadership roles to optimize corporate performance.
13 Thảo, H T P., Nam, P Đ., & Anh, H T P (2015) Giới tính, sở hữu nhà nước và thành quả công ty (Gender, state ownership and company performance) Tạp chí Phát triển Kinh tế, 26(8)
Nghiên cứu của Trương, T N T., Nguyễn, T H L., Trần, T H L., Trần, M A., và Nguyễn, H T (2014) tập trung vào mối quan hệ giữa sự hiện diện của nữ thành viên trong hội đồng quản trị và kết quả tài chính của các công ty niêm yết tại Việt Nam Kết quả nghiên cứu cho thấy rằng sự tham gia của nữ giới trong các vị trí quản lý có ảnh hưởng tích cực đến hiệu suất tài chính của doanh nghiệp, góp phần nâng cao giá trị cổ đông và thúc đẩy sự phát triển bền vững Tạp chí Kinh tế & Phát triển đã công bố nghiên cứu này trong số 205, trang 84-88.
Research findings on the impact of women on corporate Boards of Directors are inconsistent, and previous studies have not adequately examined the specific influence of female directors, particularly regarding the number needed to effect meaningful change.
In Vietnam, despite rising educational attainment among women leading to increased labor force participation, significant gender disparities persist in professional careers The International Labour Organization's 2021 report, "Gender and the Labour Market in Viet Nam," highlights that women hold a disproportionately low number of decision-making positions, comprising over half of the labor force yet occupying only about a quarter of leadership and managerial roles This gap indicates that women's contributions and qualifications are not adequately reflected in their professional advancement.
In the state sector, women occupy only 29.7% of leadership positions, while men dominate with 70.3% Similarly, in the realm of foreign direct investment, female leaders account for 34.1%, leaving 65.9% of leadership roles to males.
“On the implementation of the Beijing Declaration and Platform for action +25” from
According to UN Women (2020), women face significant discrimination in hiring and career advancement, especially in high-ranking roles Job postings reveal a clear gender preference, with 70% favoring male candidates and only 30% preferring female applicants Notably, there is a gender bias favoring men in 83% of online management job openings, and men hold all director positions, highlighting a pervasive gender disparity in various managerial roles.
"supervisors," where 78% and 87% of job advertisements, respectively, exclusively accept male applicants
15 International Labour Organization (2021) Gender and the labour market in Viet Nam Retrieved from https://www.ilo.org/hanoi/Whatwedo/Publications/WCMS_774434/lang en/index.htm
In 2020, UN Women Vietnam published an independent report evaluating the 25-year implementation of the Beijing Declaration and Platform for Action in Vietnam, focusing on the perspectives of the youth The report highlights the progress made and the ongoing challenges in promoting gender equality and women's empowerment in the country For further details, the full report can be accessed at the UN Women Asia-Pacific digital library.
Recognizing the significance of evaluating women's participation in managerial roles within Vietnamese companies, the author explores the theme “Relationship between Women Leadership and Company Performance: Evidence from Vietnamese Listed Companies.” This study aims to define the connection between female leadership and company performance, offering recommendations for Vietnamese firms to enhance operational management and support decision-making by fostering greater involvement of women in leadership positions.
Research Objectives
The topic will cover the following main research contents:
Firstly, overview of research on the women leadership toward company’s performance Secondly, evaluate the level of gender diversity on BOD in Vietnamese listed companies
Thirdly, analyze the relationship between gender diversity in managerial positions and the performance of the company
Fourthly, find the least possible female leader size that has an impact on the company’s performance
Lastly, provide implications for Vietnamese firms to better the company by utilizing the women labour force and promoting business and networking opportunities for women.
Research Scope
This dissertation explores the relationship between women's leadership and company performance, specifically focusing on Vietnamese listed companies on the Ho Chi Minh and Hanoi Stock Exchanges Women's leadership is quantified by the proportion and number of women on the Board of Directors (BOD), while company performance is assessed using accounting metrics such as Return on Equity (ROE) and Return on Assets (ROA), alongside market-based measurements like Tobin's Q The analysis is based on data extracted from the annual and financial reports of these companies for the year 2019.
Research Methodology
This study utilizes regression models to analyze the relationship between female leadership and company performance, with female leadership quantified by the number and proportion of women on corporate boards Company performance is assessed through three key indicators: Return on Assets (ROA), Return on Equity (ROE), and another unspecified measure.
In 2019, the annual reports and financial statements of 618 businesses registered on the Hochiminh Stock Exchange and Hanoi Stock Exchange will be used to compile the statistics.
Research structure
This research comprises five sections:
Chapter 1: Introduction – This chapter gives a short overview of the research's context, aims, scope, methodology, and structure
Chapter 2: Literature Review – This chapter highlights key theories and previous research on the relationship between women leadership and company performance
Chapter 3: Research Methodology and Design – This chapter explains the methodology used and how it is designed
Chapter 4: Findings and Discussions – This chapter presents the findings of the regression analysis and determines the relationship between women leadership and company performance
Chapter 5: Conclusions and Policy Implications – Recommendations for listed firms and the government will be made based on the findings of the preceding chapter h
LITERATURE REVIEW
Women leadership
Corporate governance is defined as the system responsible for guiding and controlling a firm (Adams, 2015; Campbell & Manguez-Vera, 2008) Economic theory suggests that large corporations rely heavily on their board of directors, which serves as a crucial mechanism for effective corporate governance (Baysinger & Butler, 1985; Fama & Jensen, 1983; Rose).
The representation of women in boardrooms and senior management roles has seen a significant increase globally, with many women now leading family enterprises and excelling in executive positions Research indicates that women demonstrate greater success in business management compared to their male counterparts, and female-owned family businesses have experienced a remarkable 37% growth in recent years However, despite advancements in equality laws, studies reveal that women continue to earn less than men in similar roles.
Women have shown themselves in some of the world's most demanding jobs Women are now leading and directing nations such as Germany, Myanmar, and Norway
17 Adams, M (2015) Board Diversity: More than a Gender Issue Deakin Law Review, 20, 123–152
18 Campbell, K., & Mínguez-Vera, A (2008) Gender Diversity in the Boardroom and Firm Financial Performance Journal of Business Ethics, 83(3), 435–451
19 Baysinger, B D., & Butler, H N (1985) Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition Journal of Law, Economics, & Organization, 1(1), 101–124
20 Fama, E F., & Jensen, M C (1983) Separation of Ownership and Control The Journal of Law & Economics, 26(2), 301–325
21 Rose, C (2007) Does Female Board Representation Influence Company’s performance? The Danish Evidence Corporate Governance: An International Review, 15(2), 404–413
22 Minniti, M (2009) ‘Gender issues in entrepreneurship’, Foundations and Trends in Entrepreneurship, Vol 5, Nos 7–8, pp.497–621
23 Mandl, I (2010) Overview of Family Business Relevant Issues Country Fiche Austria, p.13, EU Publishing, Belgium
24 Francke, A (2013) Women in Leadership, pp.4–5, The Guardian Press, UK h
Disparities in leadership roles between men and women can be attributed to factors such as education, career experience, and initial wealth Women are often recognized for their collaborative skills, enabling them to manage and lead organizations effectively, while men may adopt a more solitary leadership style The USA has acknowledged the importance of female entrepreneurs for economic growth, believing that women's leadership can enhance competitive advantage In India, evolving cultural perspectives have opened up opportunities for women in business, leading to increased representation in executive roles However, progress remains slow despite legal frameworks promoting workplace equality In the UK, gender pay gaps persist, with men earning significantly more than women in similar roles, which hinders female entrepreneurs' access to funding Furthermore, women tend to excel in fields like counseling and medicine, while men dominate sectors such as mechanical engineering and international trade.
Company’s performance
Company’s performance is a relatively dynamic term which evolves as time changes
Georgopoulos & Tannenbaum (1957) define a company's performance as its organizational effectiveness, emphasizing how a social group utilizes limited resources to achieve objectives while minimizing undue stress on stakeholders This definition encompasses three key criteria: organizational productivity, the company's adaptability to internal and external changes, and the absence of conflict or strain within the organization.
25 Jacobson, W.S., Palus, C.K and Bowling, C.J (2010) ‘A woman’s touch? Gendered management and performance in state administration’, Journal of Public Administration Research and Theory, Vol 20, No 2, pp.477–504
26 Mitchell, L and Ewing, M (2011) Overcoming the Gender Gap: Women Entrepreneurs as Economic Drivers, pp.2–13, Kauffman Foundation, USA
27 Carter, S L., & Shaw, E (2006) Women's business ownership: Recent research and policy developments
28 Georgopoulos, B S., & Tannenbaum, A S (1957) A Study of Organizational Effectiveness American Sociological Review, 22(5), 534 doi:10.2307/2089477 h
Ephraim Yuchtman and Stanley E Seashore (1967) argue that defining a company's performance solely based on organizational objectives is flawed; instead, societal factors and market interactions should be included James L Price (1968) identifies three criteria for assessing organizational performance: productivity, conformity, and institutionalization Harrison, F (1974) compares bureaucratic criteria in the Seattle police agency, concluding that organizational performance stems from evaluation efforts Allan Warmington, Tom Lupton, and Cecily Gribbin (1977) highlight that a company's performance is crucial, linking high productivity to employee motivation and satisfaction while minimizing turnover and dissatisfaction Katz and Kahn (1978) assert that a business's effectiveness and efficiency are vital for standardized performance globally, with success measured by maximizing total returns.
From 1980 to the present, the definition of company’s performance was related mostly to how much value a company could deliver to its customers
29 Yuchtman, E., & Seashore, S E (1967) A system resource approach to organizational effectiveness American sociological review, 891-903
30 Price, J L (1968) Organizational effectiveness: An inventory of propositions (Vol 10) Homewood, Ill: RD Irwin
31 Harrison, F (1974) Perceptions of role performance and organizational effectiveness Police Chief 4lf6V, 56-
32 Warmington, A., Lupton, T., & Gribbin, C (1977) Organizational behaviour and performance: an open systems approach to change Springer
33 Katz, D., & Kahn, R L (1978) Organizations and the system concept Classics of organization theory, 80, 480 h
Robbins (1987) emphasized that a company's performance hinges on its ability to integrate both its resources and objectives Cherrington (1989) linked performance to a company's success in achieving organizational goals with limited resources Bourguignon (1997) defined performance as actions that necessitate appropriate behavior rather than mere results Harrison and Freeman (1999) argued that stakeholders are satisfied only when a company demonstrates organizational effectiveness, equating it to performance Verboncu and Zalman (2005) posited that strong performance arises from the interplay of various factors, including management, external markets, and marketing strategies.
In 2009, researchers highlighted that the performance of an economic entity encompasses various dimensions, including growth, productivity, profitability, return, and competitiveness Truong and Tran (2009) defined company performance as an economic concept reflecting a company's ability to leverage its human resources and other inputs, such as materials, to achieve its organizational objectives.
Impact of women leadership on company’s performance
Agency theory serves as a key economic framework that elucidates the relationship between corporate governance and organizational performance, highlighting the dynamics between management and stakeholders (Carter et al., 2003).
34 Robbins, S.P., 1987 Organization Theory: Structure, Design and Application 2nd Edn., Prentice-Hall, Englewood Cliffs, NJ
35 Cherrington, D J (1989) The Management of individual and organizational performance
36 Bourguignon, A (1997) The Various Functions of Accounting Language: An Example of Performance Accounting Auditing Control, 3(1), 89-101
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38 Verboncu, I & Zalman, M (2005) Management şi performanţe, Editura Universitară
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41 Carter, D A., Simkins, B J., & Simpson, W G (2003) Corporate governance, board diversity, and firm value Financial review, 38(1), 33-53 h
In 1976, Jensen and Meckling introduced agency theory, defining a contract where one or more principals hire an agent to perform services on their behalf, thus establishing an agency relationship They noted that if both parties aim to maximize utility, the agent may not always act in the principal's best interests To mitigate agency-related issues, principals can monitor the agent's behavior (Jensen & Meckling, 1976) In the context of firms, the agency problem manifests when managers make decisions that do not align with shareholders' interests.
The Board of Directors (BOD) serves as a governance mechanism aimed at representing shareholder interests by enhancing shareholder value and curbing managerial opportunism Its primary responsibilities include controlling and monitoring managerial actions, as highlighted by Fama & Jensen (1983), Finkelstein & Hambrick (1996), and Shrader et al (1997) The board addresses agency problems between managers and shareholders through effective strategic decision-making, which involves setting appropriate compensation levels and dismissing managers who prioritize personal interests over shareholder value Fama and Jensen (1983) emphasize the importance of strong board leadership and oversight in managing these competing interests.
Gender diversity on corporate boards is expected to enhance oversight by incorporating directors from varied backgrounds, which can address a range of supervisory issues According to Pfeffer and Salancik (2003), this diversity can challenge the status quo Additionally, women tend to approach their board responsibilities with greater seriousness, leading to improved conduct and strengthening corporate governance (Singh and ).
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45 Pfeffer, J., & Salancik, G R (2003) The external control of organizations: A resource dependence perspective Stanford University Press h
Research indicates that female directors play a vital role in actively monitoring operations Studies, such as those by Gul et al (2008), suggest that boards with higher gender diversity require increased control and management efforts, ultimately leading to improved business performance.
Resource dependence theory, proposed by Pfeffer and Salancik in 1978, highlights the reliance of enterprises on external resources for survival, which can pose risks To mitigate these risks, companies often establish partnerships with entities that possess these resources According to Pfeffer and Salancik, corporate board connections offer three key benefits: advice and counseling, legitimacy, and enhanced communication channels Research shows that gender-diverse boards engage in more effective discussions on complex issues, addressing challenges that may arise in all-male boards (Huse and Solberg, 2006; Kravitz).
Incorporating gender diversity in corporate leadership can enhance a company's legitimacy and credibility, as noted by Cox et al (1991) By appointing women to the boardroom, companies can better connect with female customers, employees, and society at large This connection is facilitated through effective communication, leveraging the unique experiences and perspectives that women leaders bring to the table (Campbell and Minguez-Vera, 2008).
In general, the more presence of women members in the boardroom, the better company’s performance This leads to the following hypothesis:
46 Singh, V., & Vinnicombe, S (2004) Why so few women directors in top UK boardrooms? Evidence and theoretical explanations Corporate governance: an international review, 12(4), 479-488
47 Gul, F A., Srinidhi, B., & Tsui, J S (2008) Board diversity and the demand for higher audit effort Available at SSRN 1359450
48 Pfeffer, J., & Salancik, G R (1978) A resource dependence perspective
49 Huse, M., & Solberg, A G (2006) Gender‐related boardroom dynamics: How Scandinavian women make and can make contributions on corporate boards Women in management review
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51 Cox, T H., Lobel, S A., & McLeod, P L (1991) Effects of ethnic group cultural differences on cooperative and competitive behavior on a group task Academy of management journal, 34(4), 827-847 h
Hypothesis 1: The proportion of women on the BOD is positively correlated with company’s performance
Kanter (1977) characterizes the underrepresentation of females and minorities in senior management as “tokens” or “solos,” highlighting that these individuals often face misrepresentation tied to femininity rather than leadership qualities This distortion fosters sex-role stereotypes that conflict with societal views of effective leaders Kulich et al (2007) reveal that these gender-role preconceptions contribute to the salary gap between male and female executive directors Additionally, Lee and James (2007) note that societal schemas lead to mental associations of leadership traits predominantly with male candidates, further perpetuated by the historical perception that women possess fewer qualifications for top management roles.
The perception of female directors as mere "tokens" by stakeholders can limit their influence on business decisions The critical mass theory of board gender diversity suggests that while one female director is seen as a token, having two establishes a presence, and three provides a voice (Kristie, 2011) This theory, supported by Kramer et al (2006), emphasizes the importance of reaching a critical mass of women on boards to enhance their impact and effectiveness in decision-making.
52 Kulich, C., Ryan, M K., & Haslam, S A (2007) Where is the romance for women leaders? The effects of gender on leadership attributions and performance‐based pay Applied psychology, 56(4), 582-601
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56 Kramer, V W., Konrad, A M., Erkut, S., & Hooper, M J (2006) Critical mass on corporate boards: Why three or more women enhance governance h
15 must achieve a certain size in order to exert influence on the larger group Kramer et al
Research indicates that the presence of three or more women on a board can lead to a significant shift in dynamics, allowing them to move beyond being perceived as outsiders This critical mass empowers women to substantially influence both the discussions and decisions made within the boardroom.
Research indicates that a group size of three significantly enhances efficiency, establishing it as the critical mass for effective group formation (Bond, 2005; Nemeth and Kwan, 1987) Studies on gender diversity in boardrooms by Kramer et al (2006), Erkut et al (2008), and Konrad et al (2008) reveal that having three or more women directors meets the critical mass threshold, positively influencing board dynamics In-depth interviews with 50 women directors suggest that boards with three or more female members can transform the overall working style, allowing women's ideas to carry greater weight Consequently, executive boards with at least three women are better positioned to enhance corporate governance and decision-making, with the effects becoming more pronounced once this critical mass is achieved.
This leads to the following hypothesis:
Hypothesis 2: The Board of Directors with 3 or more women members will have a positive impact on the company’s performance
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Research has extensively explored the connection between women's leadership and company performance, with many studies indicating that gender diversity positively influences organizational outcomes (Campbell & Mínguez-Vera, 2008; Carter et al., 2003; Erhardt et al., 2003; Labelle et al., 2015; Lückerath-Rovers, 2013; Mahadeo et al., 2012; Madaleno et al., 2019; Perna et al., 2019) However, some research presents contrasting findings, suggesting a negative impact of gender diversity on performance (Adams & Ferreira, 2009; Darmadi, 2011; Shrader et al.).
1997 44 , Widhiastuti et al., 2020 11 ) and others can not find significant results (e.g Carter et al., 2010 69 ; Randoy et al., 2006 70 ; Rose, 2007 21 ; Smith et al., 2006 71 )
Mara Madaleno, Elisabete S Vieira, and Joo P C Teodósio (2019) explored the link between female board participation and firm performance metrics, including accounting (ROA and ROE) and market-based indicators (MTB and Tobin's Q), analyzing 47 Portuguese and Spanish companies from 2010 to 2017 Their findings revealed a positive correlation between the presence of women on boards, the gender of the chief financial officer, and overall firm success Additionally, research by Giuseppe Perna, Luisa Varriale, and Paola Briganti (2019) highlighted the persistent gender gap in the labor market and corporate leadership, particularly in Italy, where women's representation remains significantly low This exploratory study aims to assess the current state of gender diversity in these sectors.
63 Erhardt, N L., Werbel, J D., & Shrader, C B (2003) Board of Director Diversity and Firm Financial Performance Corporate Governance: An International Review, 11(2), 102–111
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69 Carter, D A., D’Souza, F., Simkins, B J., & Simpson, W G (2010) The Gender and Ethnic Diversity of US Boards and Board Committees and Firm Financial Performance Corporate Governance: An International Review, 18(5), 396–414
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72 Perna, G., Varriale, L., & Briganti, P (2019) GENDER DIVERSITY IN CORPORATE GOVERNANCE: ORGANIZATIONAL IMPLICATIONS OF REGULATIONS FOR COMPANY’S PERFORMANCE IN ITALY h
A study by Ratieh Widhiastuti, Kiswanto K., and Kuat Waluyo Jati (2020) examined the impact of gender diversity on corporate boards within Italian corporations, revealing that the presence of women on boards negatively affected financial performance and firm value among 2017 manufacturing businesses listed on the Indonesia Stock Exchange Conversely, research by Charbel Salloum, Georges Azzi, Catherine Mercier-Suissa, and Stephanie Khalil (2016) focused on Lebanese firms, finding no positive correlation between women's presence in management and financial success These studies highlight the complex relationship between gender diversity in leadership roles and corporate performance across different regions.
In Vietnam, there are currently no mandatory quotas for female representation on corporate boards Nevertheless, to leverage the benefits of gender diversity, the Corporate Governance Code of Best Practices recommends that public company boards include at least two women directors or achieve a minimum of 30% female representation.
Research Gap and Contribution
The previous study findings are inconsistent, and the aforementioned studies did not thoroughly examine the role of women on corporate boards of directors
This study offers empirical insights into the impact of female leadership on the success of Vietnamese firms, enhancing public awareness of women's roles in society Additionally, it serves as a valuable resource for decision-makers in selecting women for top management positions, thereby promoting gender equality in the workplace.
RESEARCH METHODOLOGY AND DESIGN
Research Methodology
This study explores the relationship between women's leadership and the financial performance of firms through quantitative research Utilizing cross-sectional data from Vietnamese listed companies in 2019, all hypotheses are empirically tested with the statistical tool EVIEWS The findings aim to shed light on how women's leadership impacts company performance.
While some studies use panel data (e.g Adams & Ferreira, 2009 67 ; Campbell & Mínguez-Vera, 2008 18 ; Carter et al., 2010 69 ; Lückerath-Rovers, 2013 65 ; Rose, 2007 21 ; Smith et al., 2006 71 ), others use cross-sectional data (e.g Carter et al., 2003 41 ; Darmadi,
This study utilizes a cross-sectional approach to examine the influence of women board members on a firm's financial success, focusing on the immediate impact of women's leadership rather than long-term effects Cross-sectional analyses are advantageous for hierarchical regression studies, as they mitigate issues like serial correlation of residuals over time While a long-term panel analysis would be ideal to assess the gradual changes in board composition, the inconsistent publication of women's data limits the availability of long-term information.
To achieve the research objective, a quantitative study was employed, as it effectively explores relationships between variables (Creswell, 2003) This method quantifies women's leadership and company performance through extensive sampling However, some aspects of these topics appear to be complex.
74 Bhagat, S., & Black, B (2001) The Non-Correlation between Board Independence and Long-Term Firm Performance Journal of Corporation Law, 27, 231–274
75 Creswell, J W (2003) A framework for design Research design: Qualitative, quantitative, and mixed methods approaches, 9-11 h
21 unquantifiable So, utilizing quantitative in this circumstance may restrict the analysis of study participants
This thesis uses a deductive or top-down technique to examine ideas using hypotheses and observations Also tied to datasets or quantitative analysis.
Research Design
This study builds on the financial theory that corporations aim to maximize shareholder value, utilizing both market-based and accounting-based metrics to assess business success Previous empirical research on board diversity and its impact on business value has varied widely in its variables, complicating comparisons of findings To address this, the current study employs commonly used proxies, specifically Return on Equity (ROE) and Return on Assets (ROA) as accounting-based measures, alongside Tobin's Q ratio as a market-based measure, facilitating a more coherent comparison with existing research.
Table 3.1 summarizes the dependent variables, their analytical label, and measurement
Table 3.1 Dependent variables – Company’s performance
Return on equity ROE Net income divided by shareholder equity Return on assets ROA Net income divided by total assets
Tobin’s Q Q Sum of the market value and total debt divided by total assets
76 Bromiley, P (1990) On the Use of Finance Theory in Strategic Management Advances in Strategic Management, 6, 71–98
77 Gentry, R J., & Wei Shen (2010) The Relationship between Accounting and Market Measures of Firm Financial Performance: How Strong Is It? Journal of Managerial Issues, 22(4), 514–530 h
The representation of women in corporate boardrooms serves as a vital indicator of female leadership within organizations This dissertation focuses on measuring the presence of women in these decision-making roles, often quantified by the percentage of women directors (P_WOMEN), as highlighted in various studies (Adams and Ferreira, 2009; Ahern and Dittmar).
This dissertation explores the impact of women directors on company performance by quantifying their presence on boards of directors (BOD) through both the proportion of women members (P_WOMEN) and the absolute number of women members (N_WOMEN) Given the varying sizes of boards across different firms, utilizing the proportion (P_WOMEN) is deemed appropriate Furthermore, the number of women (N_WOMEN) is also examined to assess its potential influence on performance, allowing for a comprehensive analysis of the relationship between female representation on BODs and corporate performance from two perspectives.
The representation of women directors is determined by the ratio of female board members to the overall number of board members Furthermore, three dummy variables are utilized to analyze the presence of women on the Board of Directors (BOD).
78 Ahern, K R., & Dittmar, A K (2012) The changing of the boards: The impact on firm valuation of mandated female board representation The quarterly journal of economics, 127(1), 137-197
79 Simpson, W G., Carter, D., & D'Souza, F P (2010) What do we know about women on boards? Journal of Applied Finance (Formerly Financial Practice and Education), 20(2) h
Table 3.2 summarizes the independent variables, their analytical label, and measurement
Table 3.2 Independent variables – Women in the boardroom
The proportion of women members
P_WOMEN Total number of women on the board divided by the total number of board members
N_WOMEN Total number of women on the board
Dummy number of women members
N0_WOMEN Equals 1 if BOD has 0 women members and 0 otherwise
Dummy number of women members
N12_WOMEN Equals 1 if BOD has 1 or 2 women members and 0 otherwise
Dummy number of women members
N3_WOMEN Equals 1 if BOD has at least 3 women members and 0 otherwise
Several variables are included in the regression analysis in order to compensate for various factors that may impact the company’s performance
The first control variable examined is the characteristics of the boardroom, which includes both the size of the board and the presence of duality Board size is defined as the total number of directors, while duality is represented as a binary variable, with a value of 1 indicating that the CEO is also a member of the Board of Directors (BOD), and 0 indicating otherwise.
The second control variable focuses on ownership characteristics, which include the percentage of shares held by government or state-owned entities, foreign legal entities, and other stakeholders The ownership percentage for each stakeholder is calculated by dividing the number of shares they own by the total number of shares.
The third control variable encompasses company characteristics, including size, the presence of a female CEO, leverage level, and company age Company size is measured using the natural logarithm of market value, while a dummy variable for a female CEO is assigned a value of 1 if the CEO is female and 0 otherwise Leverage level is defined by the debt ratio, and company age is determined by the number of years the firm has been publicly listed.
The fourth control variable is the industry sector which is based on Industry Classification Benchmark Level 1
Table 3.3 summarizes the control variables, their analytical label, and measurement
The characteristics of the board
The size of the board B_SIZE Total number of directors in the boardroom
Dummy Duality DUALITY Equals 1 if the CEO is one of the BOD members and 0 otherwise
The percentage of shares owned by governments or state-owned legal entities
S_OWN The number of shares owned by governments or state-owned legal entities divided by the total share
The percentage of shares owned by foreign legal entities
F_OWN The number of shares owned by foreign legal entities divided by the total share h
The percentage of shares owned by other entities
O_OWN The number of shares owned by other entities divided by the total share
The characteristics of the company
The size of the company COMP_SIZE The natural logarithm of market value
Dummy Women CEO WOMEN_CEO Equals 1 if the CEO is female and 0 otherwise
Leverage level LEVERAGE The sum of short-term and long-term debt divided by the total assets of the firm
Age of company COMP_AGE The number of years that the firm has been listed
Industry sector IND Industry Classification Benchmark
Based on the regression model developed by Liu et al (2014) 83 in the context of China, a nation shares a lot common with Vietnam, the author proposes the following general empirical model
There are two general hypotheses to be tested as following
Hypothesis 1: The proportion of women on the BOD is positively correlated with company’s performance h
Hypothesis 2: The Board of Directors with three or more women members will have a positive impact on the company’s performance
The project aimed to use the data sets of all 716 listed companies on the Vietnamese two stock exchanges in 2019, which consists of 333 companies in HNX and
However, due to the lack of information for 98 companies, the data from 618 companies were collected and analyzed
Hanoi Stock Exchange (HNX) 296 companies 47.9%
Hochiminh Stock Exchange (HOSE) 322 companies 52.1%
The characteristics and structure of corporate boards, along with their financial performance, are sourced from annual reports and financial statements published by the companies on their official websites, as well as from the HNX and HOSE websites and data from the Vietnam Security Depository.
The author utilized Microsoft Excel (Microsoft Office Professional Plus 2013) to gather and compute the necessary data, followed by analysis with EViews (EViews 12 Student Version) to examine the correlation among variables and execute regression models.
FINDINGS AND DISCUSSIONS
Summary Statistics
In 2019, data from 618 annual reports of listed companies on HOSE and HNX revealed that female directors held 587 of the 3,545 board seats, representing 16.56% This percentage is slightly below the global average of 16.9% in 2018 and 19.7% in 2021, yet significantly surpasses the Asian average of 9.3% in 2018 and 11.7% in 2021, according to a report by Deloitte.
Vietnam boasts a higher percentage of women on boards of directors (BOD) compared to several regional counterparts, including Qatar (1.2%), Saudi Arabia (1.7%), South Korea (4.3%), the United Arab Emirates (5.3%), Japan (8.2%), Indonesia (8.3%), Pakistan (8.7%), Taiwan (12.2%), China (13.1%), and Hong Kong (13.9%) However, countries such as India (17.1%), Singapore (17.6%), the Philippines (17.7%), Thailand (17.8%), Israel (22.4%), and Malaysia (24.0%) surpass Vietnam in female board representation Notably, Vietnam's percentage remains significantly lower than that of developed nations like France (43.2%) and Norway (42.4%).
Table 4.1 reveals that 263 companies, representing 42.56%, have no female members on their Board of Directors (BOD), while 54 companies, or 8.74%, have three or more female directors.
Table 4.1 Gender of BOD members
Gender Number of member Percentage (%)
The detailed number of women directors on board Number of companies
(Source: Author’s compilation based on annual reports)
Among 618 sampled companies, 55 are led by women CEOs, representing 8.90% of the total The global percentage of women in C-suite positions was 4.4% in 2018 and rose to 5.0% in 2021, while in Asia, it increased from 3.4% in 2018 to 4.1% in 2021, approximately half of Vietnam's figures In these 55 companies, women occupy 104 out of 305 total board seats, making up 34.10%, which is comparable to the global average of 33.5% in 2021 and exceeds Asia's 26.0% Conversely, in the 563 companies led by male CEOs, women hold 483 out of 3,240 director positions, accounting for 14.91% This percentage is lower than the global average for boards with male CEOs, which was 16.5% in 2018 and 19.4% in 2021, but significantly surpasses Asia's figures of 8.8% in 2018 and 11.1% in 2021.
In Vietnam, the Health Care industry leads with the highest percentage of women on boards of directors (BOD) at 26.37%, followed by Consumer Discretionary at 25.63% and Consumer Staples at 23.93% This contrasts sharply with regional and global figures from 2022, where Health Care also ranks highest but at significantly lower percentages of 14.2% in Asia and 21.3% globally While Consumer Discretionary and Consumer Staples hold the second and third spots in Vietnam, they do not rank as highly in Asia, where Financial Services takes precedence Interestingly, Financial Services is not among Vietnam's top industries for female directors, ranking fourth at 19.94%.
The representation of women on boards of directors (BOD) in Vietnam significantly surpasses that of both Asia and the global average, yet overall, women directors account for only 16.62% in Vietnam, compared to 11.7% in Asia and 19.7% worldwide This disparity highlights a pronounced imbalance in female representation across various industries, with certain sectors, such as Energy and Telecommunications, lacking any female board members.
Table 4.2 Top three industries with the highest percentage of the women on the board of directors
Top 1 Health Care (26.37%) Life Sciences &
(Source: Author’s analysis and Deloitte’s report, 2022) h
Table 4.3 provides a statistical description of the variables used in the model, including the number of observations, mean, standard deviation, min value and max value of variables
Section Company’s performance of table 4.3 showed the descriptive statistics of the company’s performance variables including ROE, ROA, and Q The mean of ROE, ROA, and Q is 10%, 5% and 0.75 respectively
The analysis of board gender diversity reveals that women hold 17% of board of directors (BOD) positions Among the companies surveyed, 43% have no female directors, 49% have one or two female directors, and only 9% feature three female directors.
A typical Board of Directors (BOD) consists of 3 to 11 members, with an average of 5 to 6 members, and in approximately 87% of companies, the CEO also serves as a BOD director Most firms are in the private sector, with ownership distribution comprising 20% state ownership, 10% foreign ownership, and 70% other ownership Notably, only 9% of companies are led by women CEOs Additionally, the average leverage ratio across these companies stands at 21%.
Table 4.3 Descriptive statistics of variables in the models
Variables Obs Mean Std Dev Min Max
(Source: Author’s compilation based on results obtained from Excel software) h
Correlation Matrix
Table 4.4 illustrates the correlation coefficients among independent and control variables, revealing a significant relationship between the proportion of women on the Board of Directors (P_WOMEN) and the number of women on the Board (N_WOMEN), with a high coefficient of 0.94 Additionally, a strong correlation of 0.87 exists between Return on Equity (ROE) and Return on Assets (ROA) The correlation between the number of women on the Board (N_WOMEN) and N12_WOMEN is notably negative at -0.84, while S_OWN and O_OWN exhibit a coefficient of -0.87 Other than these, no significant relationships are observed among the independent and control variables To mitigate multicollinearity, distinct variables are utilized across various regression models.
Table 4.4 demonstrates that the presence of women directors positively influences company performance metrics such as ROE, ROA, and Q Specifically, the absence of women directors (N0_WOMEN) negatively affects these indicators, while having one or two women directors (N2_WOMEN) yields mixed results—negative for ROE and Q but positive for ROA Conversely, companies with three or more women directors (N3_WOMEN) show positive impacts across all three performance metrics Additionally, board size (B_SIZE) and duality (DUALITY) generally enhance company performance, although duality shows a negative relationship with Q Ownership characteristics reveal that state ownership percentage (S_OWN) and foreign ownership percentage (F_OWN) contribute positively, while other ownership percentages (O_OWN) negatively impact performance Furthermore, company size (COMP_SIZE) is positively correlated with financial performance, and the presence of a women CEO is associated with improved ROE, ROA, and Q.
The company's performance is positively influenced by Q, while both leverage and firm age negatively affect performance, with the exception of the relationship between leverage levels and Q.
The relationship between the proportion of women on the BOD and company’s
Chapter 3 posits that a higher proportion of women on the Board of Directors (BOD) is positively correlated with improved company performance To investigate this relationship and test the hypothesis, the author utilized a regression model, measuring board gender diversity through the proportion of women (P_WOMEN) and assessing company performance via Return on Equity (ROE), Return on Assets (ROA), and Tobin's Q (Q) The analysis included six control variables: Duality (DUALITY), Shareholder Ownership (S_OWN), Foreign Ownership (F_OWN), Company Size (COMP_SIZE), Presence of a Female CEO (WOMEN_CEO), Leverage (LEVERAGE), and Company Age (COMP_AGE) The null hypothesis, which states that the coefficient of P_WOMEN is zero or negative, was rejected at a 5% significance level using a one-tailed test.
Table 4.5 displays the findings, revealing that the upper 5% point of t(609) is 1.64736 Additionally, the coefficients of P_WOMEN across all three equations are significantly positive at a 5% significance level, thereby supporting Hypothesis 1.
Resource dependency theory suggests that firms rely on external connections for success (Pfeffer & Salancik, 1978) Daily (2003) emphasizes that a company's performance hinges on these resource links Terjesen (2009) notes that female board members bring unique knowledge, skills, and experiences compared to their male counterparts Additionally, Hillman, Shropshire, and Canella (2007) highlight that women can forge connections with a diverse range of stakeholders, including customers and suppliers Many companies view female directors as valuable sources of innovative ideas and relationships with women employees Ultimately, board gender diversity enhances branding and decision-making quality, providing a competitive edge for firms.
80 Daily, C M., & Dalton, D R (2003) Women in the boardroom: A business imperative Journal of Business strategy
81 Terjesen, S., Sealy, R., & Singh, V (2009) Women directors on corporate boards: A review and research agenda Corporate governance: an international review, 17(3), 320-337
82 Hillman, A J., Shropshire, C., & Cannella, A A (2007) Organizational predictors of women on corporate boards Academy of Management Journal, 50(4), 941-952 h
Table 4.5 Regression Model result for the Hypothesis 1
Variable Coefficient Std Error t-Statistic Prob
S.E of regression 0.104877 Akaike info criterion -1.657570
Sum squared resid 6.687557 Schwarz criterion -1.593026
Log likelihood 520.3603 Hannan-Quinn criter -1.632476
Variable Coefficient Std Error t-Statistic Prob
F_OWN -0.004354 0.020308 -0.214418 0.8303 COMP_SIZE 0.018204 0.003593 5.066509 0.0000 WOMEN_CEO -0.002515 0.009792 -0.256817 0.7974 LEVERAGE -0.087889 0.014181 -6.197764 0.0000 COMP_AGE 0.000225 0.000660 0.340334 0.7337
R-squared 0.117942 Mean dependent var 0.051253 Adjusted R-squared 0.106336 S.D dependent var 0.068114 S.E of regression 0.064391 Akaike info criterion -2.633208 Sum squared resid 2.520886 Schwarz criterion -2.568664 Log likelihood 821.3447 Hannan-Quinn criter -2.608114 F-statistic 10.16212 Durbin-Watson stat 1.896435 Prob(F-statistic) 0.000000
Variable Coefficient Std Error t-Statistic Prob
F_OWN -0.058932 0.155022 -0.380149 0.7040 COMP_SIZE 0.165436 0.027223 6.077173 0.0000 LEVERAGE 0.121097 0.108383 1.117310 0.2643 COMP_AGE -0.000680 0.005043 -0.134915 0.8927
R-squared 0.075249 Mean dependent var 0.751527 Adjusted R-squared 0.064619 S.D dependent var 0.508856 S.E of regression 0.492140 Akaike info criterion 1.432775 Sum squared resid 147.5011 Schwarz criterion 1.490148 Log likelihood -434.0112 Hannan-Quinn criter 1.455081 F-statistic 7.079331 Durbin-Watson stat 1.903671 Prob(F-statistic) 0.000000 h
4.4 The least women director size that has an impact on a company’s performance
Chapter 3 discusses hypothesis 2, which posits that a Board of Directors (BOD) with three or more women members positively influences company performance To evaluate this hypothesis, the author employs a regression model with independent variables N12_WOMEN and N3_WOMEN, while the dependent variables are ROE, ROA, and Q Control variables include DUALITY, S_OWN, F_OWN, WOMEN_CEO, LEVERAGE, and COMP_AGE The regression analysis tests the null hypothesis that the coefficient of N3_WOMEN is zero or negative, which is rejected at a 5% significance level using a one-tailed test.
The regression results presented in Table 4.6 indicate that the upper 5% point of t(609) is 1.64736 Additionally, the coefficients for N3_WOMEN across all three equations show a significant positive correlation at the 5% level, thereby supporting Hypothesis 2.
This result is consistent with critical mass theory and previous research Liu et al
Research indicates that having three female directors among 15 board members can exert greater influence than having one woman in a group of five, even though both scenarios feature the same number of women on the board According to Kramer et al (2006), a subgroup needs to attain a certain threshold to significantly impact the overall population Therefore, it is essential for women directors to reach a specific level to effectively influence board dynamics and enhance business performance.
83 Liu, Y., Wei, Z., & Xie, F (2014) Do women directors improve firm performance in China? Journal of corporate finance, 28, 169-184
84 Kramer, V W., Konrad, A M., Erkut, S., & Hooper, M J (2006) Critical mass on corporate boards: Why three or more women enhance governance h
Table 4.6 Regression Model result for the Hypothesis 2
Variable Coefficient Std Error t-Statistic Prob
S.E of regression 0.110056 Akaike info criterion -1.561179
Sum squared resid 7.364267 Schwarz criterion -1.496635
Log likelihood 490.6237 Hannan-Quinn criter -1.536085
Variable Coefficient Std Error t-Statistic Prob
WOMEN_CEO 0.006911 0.009712 0.711631 0.4770 LEVERAGE -0.083465 0.014492 -5.759536 0.0000 COMP_AGE -0.000557 0.000661 -0.843004 0.3996
R-squared 0.078637 Mean dependent var 0.051253 Adjusted R-squared 0.066514 S.D dependent var 0.068114 S.E of regression 0.065810 Akaike info criterion -2.589612 Sum squared resid 2.633217 Schwarz criterion -2.525068 Log likelihood 807.8953 Hannan-Quinn criter -2.564518 F-statistic 6.486496 Durbin-Watson stat 1.859667 Prob(F-statistic) 0.000000
Variable Coefficient Std Error t-Statistic Prob
WOMEN_CEO 0.085713 0.074688 1.147612 0.2516 LEVERAGE 0.159388 0.111445 1.430201 0.1532 COMP_AGE -0.007608 0.005082 -1.497203 0.1349
R-squared 0.023666 Mean dependent var 0.751527 Adjusted R-squared 0.010820 S.D dependent var 0.508856 S.E of regression 0.506095 Akaike info criterion 1.490296 Sum squared resid 155.7286 Schwarz criterion 1.554841 Log likelihood -450.7564 Hannan-Quinn criter 1.515391 F-statistic 1.842239 Durbin-Watson stat 1.905217 Prob(F-statistic) 0.066671 h
CONCLUSIONS AND POLICY IMPLICATIONS
Conclusions
Using the descriptive statistics and correlation analysis, there are some main points that can be concluded from 618 observations from 618 Vietnamese listed companies on both HOSE and HNX in 2019
In Vietnam, the representation of women on the boards of directors (BOD) of firms is lower than the global average but exceeds that of Asia Notably, Vietnam boasts a percentage of female CEOs that is approximately double that of both Asia and the global levels Additionally, more Vietnamese companies are actively promoting women to CEO positions While the percentage of female directors in companies led by both female and male CEOs is slightly below the global average, it is significantly higher than in Asia However, there is a distinct disparity in the distribution of female directors across various industries, with some sectors having a higher concentration of women in leadership roles than others.
Using the Least Square approach, the regression findings reveal two main points about the link between women leadership and the company’s performance
Research indicates that a higher percentage of women on the Board of Directors (BOD) positively affects a company's performance, as measured by both accounting metrics like Return on Equity (ROE) and Return on Assets (ROA), as well as market-based measures such as Tobin's Q Furthermore, the findings reveal that boards with a minimum of three female members significantly enhance corporate performance compared to those with two or fewer female members.
Policy Implication
Effective corporate governance allows companies to capitalize on growth opportunities while tackling societal issues Inadequate governance can limit businesses' access to capital markets (Le, 2014) Additionally, Le (2014) emphasized the necessity for ongoing improvements and adaptations in corporate governance practices.
Khung pháp luật về quản trị công ty đại chúng ở Việt Nam hiện nay đang được xem xét và hoàn thiện nhằm nâng cao hiệu quả hoạt động của doanh nghiệp trong bối cảnh cải cách thể chế thị trường Hội thảo về hoàn thiện pháp luật doanh nghiệp và đầu tư tại Hà Nội đã nhấn mạnh tầm quan trọng của việc cải cách này để thích ứng với xu hướng phát triển kinh tế toàn cầu và đảm bảo tính minh bạch trong quản trị công ty.
Corporate governance should be viewed as a "Work in Progress" that adapts to the evolving economic landscape, enhancing competitiveness rather than adhering to a "One-Size-Fits-All" approach.
In Vietnam, corporate governance for listed companies aligns with the 2020 Law on Enterprises, the 2019 Law on Securities, and global best practices The Ministry of Finance's Circular No 116/2020/TT-BTC establishes the Board of Directors as the highest governing authority, responsible for safeguarding the company's interests and ensuring successful investments, with all strategic decisions requiring Board authorization However, the Circular lacks provisions for a minimum percentage of female members on the Board To improve corporate governance and operational efficiency, it is essential for the Ministry of Finance to introduce regulations mandating a quota for female Board members, similar to laws enacted in countries like Norway, Spain, and Canada.
This research aims to improve the understanding of corporate governance mechanisms and Board of Directors (BOD) structures in listed firms Consequently, these firms should utilize the findings of this study to develop a flexible, dynamic, and effective corporate governance framework The recommended solutions for enhancing corporate governance in listed businesses are outlined in this study.
The study highlights the importance of gender diversity on the Board of Directors, indicating that the inclusion of female directors significantly enhances company performance To achieve optimal success, organizations should ensure a balanced representation of women on their boards.
Managers in publicly listed companies should undergo formal training in corporate governance to enhance their understanding of information transparency and accountability By investing in such training sessions, organizations can improve their governance practices and ensure adherence to established procedures.
Investors may also use this study's findings as criteria for evaluating the firm in order to make the best investment choice.
Limitations and suggestions for future research
The research highlights significant limitations regarding non-observable factors, such as age, experience, and education level of female board members, which impede the assessment of their impact on financial success Additionally, elements like cultural influences and the presence of women in executive roles have not been adequately addressed These constraints could substantially affect the perceived relationship between the number of women on a company's board and its financial performance Furthermore, the duration of the observation period may be insufficient to establish this connection It is essential for future studies to consider these limitations.
[Tran Thi Thanh Huong was funded by Vingroup JSC and supported by the Master, PhD Scholarship Programme of Vingroup Innovation Foundation (VINIF), Institute of Big Data, code VINIF.2021.ThS.16] h
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Research by Hillman, Shropshire, and Cannella (2007) identifies key organizational factors influencing the presence of women on corporate boards, highlighting the importance of diversity in leadership roles Additionally, Huse and Solberg (2006) explore the unique dynamics of gender within boardrooms, emphasizing how Scandinavian women contribute significantly to corporate governance These studies underline the necessity of fostering inclusive environments that promote female participation in decision-making processes at the highest levels of management.
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Khung pháp luật về quản trị công ty đại chúng ở Việt Nam hiện nay đang được xem xét và hoàn thiện nhằm đáp ứng yêu cầu cải cách thể chế thị trường Bài viết của Le, M T (2014) tại hội thảo về hoàn thiện pháp luật doanh nghiệp và đầu tư nhấn mạnh tầm quan trọng của việc xây dựng một hệ thống pháp lý vững chắc để nâng cao tính minh bạch và trách nhiệm trong quản trị công ty Việc cải cách này không chỉ góp phần vào sự phát triển bền vững của thị trường mà còn thu hút đầu tư nước ngoài, tạo điều kiện thuận lợi cho sự phát triển kinh tế của Việt Nam.
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The Resolution No 28/NQ-CP, issued by the Vietnamese government, outlines the National Strategy on Gender Equality for the years 2021 to 2030 This strategic framework aims to promote gender equality across various sectors and enhance the role of women in society The document emphasizes the importance of inclusive policies and actions to address gender disparities, ensuring equal opportunities for all individuals For further details, the full resolution can be accessed at LuatVietnam's official website.
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Women-owned SMEs in Vietnam face unique challenges and opportunities, highlighting the need for targeted support and solutions The current landscape reveals significant gender disparities in entrepreneurship, with women often encountering barriers such as limited access to financing, markets, and networks Addressing these issues is crucial for fostering an inclusive business environment Implementing policies that promote gender equality, enhancing access to resources, and providing mentorship programs can empower women entrepreneurs By recognizing and addressing these challenges, Vietnam can unlock the full potential of women-led businesses, contributing to economic growth and development.
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Trang and Nhị (2020) examine the impact of female board members on the performance of listed companies, highlighting the positive correlation between gender diversity in leadership and organizational effectiveness Their research, published in the Economic Development Journal, emphasizes the importance of female representation in corporate governance, suggesting that diverse boards contribute to better decision-making and improved financial outcomes The study provides valuable insights into how increasing female participation in boardrooms can enhance overall company performance.
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The presence of female board members significantly influences the financial performance of Vietnamese listed companies This study, published in the Journal of Economics and Development, explores the correlation between gender diversity on corporate boards and financial outcomes The findings suggest that companies with female directors tend to achieve better financial results, highlighting the importance of gender representation in leadership roles.
The independent report by UN Women Vietnam (2020) evaluates the 25-year implementation of the Beijing Declaration and Platform for Action, focusing on the perspectives of Vietnamese youth This comprehensive analysis highlights both achievements and challenges faced in promoting gender equality and empowering young individuals in Vietnam The report is accessible online for further insights into the progress made and the ongoing efforts needed to fulfill the commitments of the Beijing Platform.
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Securities symbols of companies listed on HOSE 2019
AAA CEE DPR HAG ITC NKG RAL SZC TTB VRE
AAM CHP DQC HAI ITD NLG RDP SZL TTE VSC
ABT CIG DRC HAP JVC NNC REE TCB TV2 VSI
ACB CII DRH HAR KBC NSC ROS TCH TVB VTB
ACC CLC DRL HAS KDC NT2 S4A TCL TVS VTO
ACL CLL DSN HAX KDH NTL SAV TCM TVT YBM
ADG CLW DTA HBC KHP NVL SBA TCO TYA YEG
ADS CMG DTL HCD KMR NVT SBV TCR UDC
AGM CMV DTT HCM KOS OGC SC5 TCT UIC
AGR CMX DXG HDB KPF OPC SCD TDC VAF
AMD CNG DXV HDC KSB PAC SFC TDG VCB
ANV COM EIB HDG L10 PAN SFG TDH VCF
APC CRC ELC HHS LAF PC1 SFI TDM VCI
APG CRE EMC HII LBM PDN SGN TDW VDP
ASM CSM EVE HMC LCM PET SGR TEG VDS
ASP CSV EVG HNG LDG PGC SGT TGG VFG
BBC CTD FCM HOT LEC PGI SHA THG VGC
BCE CTF FCN HPG LGC PHC SHI THI VHC
BCG CTG FDC HQC LGL PHR SHP TIP VIB
BCM CTI FIR HRC LHG PIT SII TIX VIC
BFC CTS FIT HSG LM8 PJT SJD TLD VID
BIC CVT FLC HSL LPB PLP SJF TLG VIP
BID DAG FMC HT1 MBB PLX SKG TLH VIX
BMI DAH FPT HTI MCG PMG SMA TMS VJC
BMP DAT FRT HTL MCP PNC SMB TMT VMD
BRC DBC FTS HTV MDG PNJ SMC TN1 VND
BSI DBD GAB HU3 MHC POM SPM TNA VNE
BTT DCL GDT HUB MIG POW SRC TNC VNG
BVH DGC GEG HVH MSH PPC SSI TNI VNL
BWE DHA GIL HVN MSN PTB STB TNT VNS
C32 DHC GMC HVX MWG PTC STG TPB VPB
C47 DHM GMD IBC NAV PTL STK TPC VPH
CAV DLG GSP IDI NBB PVT SVC TRA VPI
CCL DMC GTA IJC NCT QBS SVI TRC VPS
CDC DPM GVR ILB NHH QCG SVT TSC VRC h