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Do female leaders influence bank profitability and bank stability? Evidence from Vietnamese banking sector

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  • Hai Yen Hoang
  • Ngoc Vu
  • Linh Nguyen

Abstract

A diverse board has been seen as an important factor contributing to the success and sustainability of a company. Therefore, policies to enhance the diversity of the boards have been implemented in many countries around the globe. However, previous findings on the impact of female leaders on firm performance still remain inconclusive. Using a dataset of 20 Vietnamese commercial banks over the period from 2013 to 2019, this paper examines whether the gender of the bank leaders such as CEOs or members of Management Team (MT), Board of Directors (BOD) have an impact on bank profitability and bank stability in Vietnam. Our findings suggest that banks with female CEOs tend to be more profitable and more stable than those with male CEOs. However, more women appointed to MT do not necessarily result in more profitable or more stable banks. More interestingly, the presence of women on banks’ board of directors implies lower profitability and more vulnerability for banks. Obtained findings imply important bank governance policies toward better performance and stability for commercial banks in Vietnam. Keywords: gender diversity; bank profitability; bank stability; female leaders JEL Classification Codes: G21, G32, M14, J16, J24

Suggested Citation

  • Hai Yen Hoang & Ngoc Vu & Linh Nguyen, 2021. "Do female leaders influence bank profitability and bank stability? Evidence from Vietnamese banking sector," Economics and Business Letters, Oviedo University Press, vol. 10(3), pages 262-273.
  • Handle: RePEc:ove:journl:aid:15955
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/15955
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    References listed on IDEAS

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    1. Jana BADRAN & Maria CHAMOUN, 2024. "Corporate Governance and Banking Stability in the MENA Region," International Business Research, Canadian Center of Science and Education, vol. 17(2), pages 1-31, April.

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    More about this item

    Keywords

    gender diversity; bank profitability; bank stability; female leaders jel classification codes: g21; g32; m14; j16; j24;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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