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The Role of Gender Diversity in Downside Risk: Empirical Evidence from Vietnamese Listed Firms

Author

Listed:
  • Cong-Duc Tran

    (Faculty of Business Administration, Ton Duc Thang University, 19 Nguyen Huu Tho st., Tan Phong Ward, District 7, Ho Chi Minh City 729000, Vietnam)

  • Minh-Tuan Phung

    (Faculty of Business Administration, Ton Duc Thang University, 19 Nguyen Huu Tho st., Tan Phong Ward, District 7, Ho Chi Minh City 729000, Vietnam)

  • Fu-Ju Yang

    (Department of Banking & Finance, Chinese Culture University, 55, Hwa-Kang Rd., Yang-Ming-Shan, Taipei 11114, Taiwan)

  • Yi-Hsien Wang

    (Department of Banking & Finance, Chinese Culture University, 55, Hwa-Kang Rd., Yang-Ming-Shan, Taipei 11114, Taiwan)

Abstract
Corporate governance has been marked as an important component of the fast-growing pace of the Vietnam economy recently. Aligning with the concern that gender plays a critical role in corporate management, this study aims to reveal the entire benefits of the appearance of women on board to reduce downside risk in the frontier countries. By using a unique dataset from Vietnamese listed firms and appropriate econometric methods, we present tight results that the presentation of women at firm management level is more likely to lessen the downside risk. In particular, female non-senior reduces all risk attributes, whereas the presence of women in executive board decrease firm risk only. Furthermore, the decreasing of individual and systemic risk are additionally driven by female Chief Executive Officer (CEO) and chairman. We found strong evidence that female leadership may decrease risk-taking in the low-risk firms at all managerial levels but not in the case of a female CEO. In summary, by examining data from specific frontier areas such as Vietnam, we confirm that the role of female leadership in terms of reducing the downside risk depend on their power managerial levels and the firm-risk behavior.

Suggested Citation

  • Cong-Duc Tran & Minh-Tuan Phung & Fu-Ju Yang & Yi-Hsien Wang, 2020. "The Role of Gender Diversity in Downside Risk: Empirical Evidence from Vietnamese Listed Firms," Mathematics, MDPI, vol. 8(6), pages 1-22, June.
    • Handle: RePEc:gam:jmathe:v:8:y:2020:i:6:p:933-:d:368534
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