| dc.description.abstract | There have been an increasing number of studies regarding the relationship between boardroom gender diversity and firm performance. However, majority of researches were conducted in developed countries with ambiguous result.
Using the sample of 100 companies on HOSE by largest capitalization covering 5 years (2012 – 2016), this study aims to clarify the causality relationship of female representation on board and firm value in an economy featured by underdeveloped corporate governance such as Vietnam.
Based on the agency theory and resource dependence theory, the finding revealed that the increase in number of female directors was associated with negative firm performance in dynamic modeling framework addressing endogeneity problem. In additional robustness checks, the result remained validating as employing macroeconomic factor and alternative proxy of gender diversity. But what is the story behind women’s leadership appointment? Consistent with glass cliff theory, the research suggested that misperception of investors toward female leader rather than reality of performance can lead to devaluation of companies. Apart from that, there was none evidence to support the opposite causality direction that firm poor performance can predict the appointment of women directors.
Therefore, this study considerably contributed to recent literature by involving psychological factors to interpret corporate governance issues. In addition, it would also provide further input relating to boardroom gender balance to relevant stakeholders (Vietnam corporations, investors and policy makers). | en_US |
