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Are female CEOs more risk averse than male counterparts? Evidence from Vietnam

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  • Hoang, Tuyen Thanh
  • Nguyen, Cuong Viet
  • Van Tran, Hoa Thi

Abstract

In this study, we examine the differences in risk preference between male and female CEOs of firms in Vietnam. Using firm fixed-effects and instrumental variable regressions, we find that female-managed firms are less likely to operate in industries with high levels of risk. Using decomposition analysis, we find that differences due to the observed characteristics of male- and female-managed firms account for 56% of the gap in the risk index between these firms. The differences due to coefficients of the characteristics explain around 58% of the gender gap in the risk index. Among characteristics of CEOs and firms, differences in CEO age and firm ownership contribute the most to the difference in the risk index between male- and female-managed firms.

Suggested Citation

  • Hoang, Tuyen Thanh & Nguyen, Cuong Viet & Van Tran, Hoa Thi, 2019. "Are female CEOs more risk averse than male counterparts? Evidence from Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 57-74.
    • Handle: RePEc:eee:ecanpo:v:63:y:2019:i:c:p:57-74
    DOI: 10.1016/j.eap.2019.05.001
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    3. Bach, Thang Ngoc & Le, Thanh & Nguyen, Thang Xuan & Hoang, Khanh, 2023. "Gender discrimination, social networks and access to informal finance of Vietnamese small and medium enterprises," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 358-372.
    4. Grace C. Liu & Willem Spanjers, 2023. "Modeling Uncertainties and Gender Differences in Entrepreneurial Decision Making," Working Paper series 23-15, Rimini Centre for Economic Analysis.
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    7. Veena L. Brown & Erica E. Harris, 2023. "The Association of Female Leaders with Donations and Operating Margin in Nonprofit Organizations," Journal of Business Ethics, Springer, vol. 185(1), pages 223-243, June.
    8. Gong, Xu & Lin, Anlan & Chen, Xiaoqi, 2022. "CEO–CFO gender congruence and stock price crash risk in energy companies," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 591-609.
    9. Zyed Achour, 2022. "Board Gender Diversity and Firm Risk," Chapters, in: Okechukwu Lawrence Emeagwali & Feyza Bhatti (ed.), Corporate Governance - Recent Advances and Perspectives, IntechOpen.
    10. Huang, Ruilei & Wei, Jiuchang, 2023. "Does CEOs’ green experience affect environmental corporate social responsibility? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 205-231.
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    More about this item

    Keywords

    CEO gender; Risk aversion; Firm performance; Vietnam;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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