Effect of Board Diversity on Financial Performance of the Vietnamese Listed Firms

Ngo, My Tran; Pham, Thi Van Pham Van Hong; Luu, Thi Thai Tam

doi:10.18488/journal.aefr.2019.97.743.751

Cited by 15 publications

(15 citation statements)

References 18 publications

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“…The possible explanation for this is that females on board are mostly voluntarily assuring compliance with stated rules and regulations that govern the operation of the firms. This is in line with the works of Bin Khidmat et al (2020), Guping et al (2020), Haque and John (2020), Ngo et al (2019).…”

Section: Resultssupporting

confidence: 90%

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Corporate board gender, institutional strength and energy disclosure in Nigeria

Jibril¹,

Isa

Maigoshi

2022

JCEFTS

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Purpose The study aims to evaluate the impact of corporate board gender on the energy disclosure with moderating effect of institutional strength (global competitiveness index) by the listed firms in Nigeria. Design/methodology/approach The study uses a sample of 49 non-financial firms listed on the floor of the Nigerian stock exchange commission for the period of five years (2016–2020). The study uses content analysis techniques to obtain data on environmental disclosure through the use of Global Reporting Initiative standards from the sampled firms. Random and fixed effect regression analyses were run for both direct and moderation models. Based on the results of the Hausman tests, random results were adopted and used in examining the relationship among research variables. Findings The study revealed average energy disclosure by the sampled firms. The overall results of the regression analysis found that board gender diversity is significantly related to energy disclosure. The institutional strength moderation result was found to have an insignificant impact on the relationship between board gender and energy disclosure. Research limitations/implications The study is constrained by not considering all environmentally sensitive firms in the country. Furthermore, the study considered only gender among numerous important board attributes. Hence, other important board attributes should be assessed for better energy disclosure. Future studies should consider data from all sensitive firms and other board attributes. Practical implications Recently, the Nigerian Government mandates all firms to comply with environmental disclosure in Nigeria, this should be used as a way forward to encourage and compel all listed firms to improve their energy disclosure. Social implications With diverse and vibrant women on boards, firms would benefit and gain legitimacy across demographic, ethnic and religious groups in the society. Hence, corporate bodies can effectively contribute toward enhancing the social welfare of various segments of society. Originality/value To the best of the authors’ knowledge, this is the first study that provides empirical evidence on the effect of board gender attributes on the energy disclosure using institutional strength as a moderator in Nigeria.

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Section: Resultssupporting

confidence: 90%

“…operation of the firms. This is in line with the works of Bin Khidmat et al (2020),Guping et al (2020),Haque and John (2020),Ngo et al (2019).…”

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confidence: 92%

Corporate board gender, institutional strength and energy disclosure in Nigeria

Jibril¹,

Isa

Maigoshi

2022

JCEFTS

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“…The improvement in the performance of enterprises when the percentage of women's participation is high in the BOD is also consistent with the announcement of Jurkus et al (2011), Ain et al (2021) in developed countries such as China or America. Moreover, the positive correlation between gender diversity in the BOD and firm performance has also been confirmed by authors in developing countries (Mohsni et al, 2021) such as Vietnam (Ngo et al, 2019), Bangladesh (Rashid, 2015), India (Duppati et al, 2020) when they provide evidence about the positive impact of gender diversity boards and firm performance.…”

Section: Empirical Results and Analysissupporting

confidence: 55%

Agency cost: A missing link between female on board and firm performance

et al. 2022

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This research aims to investigate the relationship between the presence of females in the board of directors (BOD) and agency cost as well as firm performance with the mediating role of agency costs. We employ STATA to test feasible general least squares and generalized method of moments (GMM) on Vietnamese listed firms' data over 2015-2019. The results demonstrate that the presence of female directors is positively related to firm performance. The percentage of females has a positive relationship with agency cost, which has a negative impact on firm performance. The mediating role of the agency cost variable only reduces the positive impact of gender diversity in the BOD on firm performance, but this relationship is not reversed. The main contribution is the examination of the moderating role of state ownership and the mediating role of agency costs. Our study provides evidence about women's roles in different legal contexts, which might foster the formation of future legal frameworks.

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“…Moreover, a study conducted by Srivastava (2018) in India found that the presence of female directors on the board has a negative association with the COE and has a positive impact on the firm performance. Different studies conducted in different parts for the world studying the impact of gender diversity on firm performance like Ngo et al (2019), in Vietnam, Aggarwal et al (2019) in India and Khan and Abdul Subhan (2019) on PSE 100 index in Pakistan all found that gender diversity enhances firm performance. However, in a study conducted in Malaysia by Razali (2018) found that female directors on the board decrease the firm performance.…”

Section: Board Characteristics 221 Board Independence (Ined)mentioning

confidence: 99%

The impact of corporate governance on the cost of equity

Yang

Sarwar

Ali

2019

AJAR

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Purpose In view of organizational inertia, with the occurrence of a major event, though resource rigidity minimizes, however simultaneously, it increases process rigidity, which creates difficulties in motivating managers and dealing with the agency problem. Therefore, keeping in mind the high demand created by the China–Pakistan Economic Corridor and Naya Pakistan Housing Scheme in the cement sector of Pakistan, the purpose of this paper is to investigate the impact of corporate governance (CG) on the cost of equity (COE) in the cement sector, to deal with the problems surging during and after the completion of these projects and highlight further opportunities for the cement sector of Pakistan. Design/methodology/approach CG is a qualitative concept therefore, eight proxies have been used to measure it along with the two control variables. This study uses balance panel data of six years from 2012 to 2017, collected from 18 companies of the cement sector of Pakistan. Descriptive statistics have been used to describe the data, correlation matrix to see the nature of the relationship, and Pooled OLS as the estimation technique, while to analyze the data a statistical package 13 has been used. To measure the COE, the Capital Asset Pricing Model (CAPM) has been used. Findings Regression results suggest that block ownership, insider ownership and the board size are insignificant, while CEO tenure is negatively and significantly associated with the COE. Non-executive directors, independence and CEO duality are insignificant; however, diversity is positively and significantly associated with the COE. Moreover, the mean value of the COE is 8.22 percent for the cement sector, while the coefficient of determination of the model under study is 74 percent. Research limitations/implications This paper is based on the data from the cement sector of Pakistan only. Therefore, this is the reason that these results cannot be generalized on the whole economy of Pakistan. Practical implications This study helps in finding out the COE value specific to the cement sector, which will help this sector to evaluate the capital budgeting decision more precisely and accurately than before. Moreover, the association of diversity as positive, while independence as negative with the COE highlights a room for improvement in the implementation of CG codes by SECP. This study also helps to mitigate the impact of inertia, the after-effects of high demand, and managing the agency problem in the cement sector. Originality/value This is the first study using CG data collected just after the revised promulgation of CG codes in 2012, along with a wide range of eight proxies measuring CG and its impact on the COE in the cement sector.

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Effect of Board Diversity on Financial Performance of the Vietnamese Listed Firms

Cited by 15 publications

References 18 publications

Corporate board gender, institutional strength and energy disclosure in Nigeria

Corporate board gender, institutional strength and energy disclosure in Nigeria

Agency cost: A missing link between female on board and firm performance

The impact of corporate governance on the cost of equity

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