Does Board Diversity Affect Commercial Banks' Level Of Operational Risk? Evidence In Vietnam

Abstract

This study investigates the relationship between board diversity and operational risk among Vietnamese commercial banks listed on the Ho Chi Minh Stock Exchange and the Hanoi Stock Exchange. The research employs secondary data from 19 commercial banks, comprising 207 observations spanning the period 2009-2019. The study employs panel data regression analysis to estimate regression coefficients. The findings derived from empirical analysis indicate that the operational risk of banks is adversely affected by the proportion of state ownership. Nonetheless, it has been observed that in Vietnam, there exists no discernible correlation between the presence of female board members, independent board members, and board size, and the degree of operational risk exhibited by banks.