Abstract
The study was conducted to investigate the relationship between diversification on Board and firm performance. The investigation has been performed using panel data procedure for a sample of 204 Vietnamese listed companies in two different groups: Large cap and Mid cap, listed in HOSE and HNX during the period of five years from 2015 to 2019. The study uses three performance measures (including return on equity, return on asset, Tobin’s Q) as dependent variable. The independent variables for measurement of diversification on Board are the number of females and the diversification for Supervisory Board are the number of females only. Other independent variables are average age of Board member, CEO duality and the number of independent directors. The results indicated that firm performance have positive relationship with nationality diversity on Board and gender diversity on Supervisory Board. CEO duality shows a significant result of negative effect on firm performance.
Highlights
IntroductionWoman play more and more important role in business. The increasing in diversity should be an essential social trend (Adams, Daniel, 2009) because they can offer different management approach compared to men
Nowadays, woman play more and more important role in business
There are a few foreigners playing an important role in management position in Vietnamese companies, the sample size is not large enough for investigation
Summary
Woman play more and more important role in business. The increasing in diversity should be an essential social trend (Adams, Daniel, 2009) because they can offer different management approach compared to men. The company may not suffer from too many risky portfolios, but the growth rate of corporation seems to be more stable rather than high growth in the future. The concept of corporate governance should be considered as an important factor in a corporation. It is the concept of structure and procedures system of the management team to balance the interest among different stakeholders. Corporate governance plays an important role in effective business decision making in order to improve firm performance, extend business and solving problems in financial difficulties. Kemp (2006) stated that good corporate governance practices leads to an effective board management behavior, it will improve the business performance. Because this study will use the data from listed companies in HOSE and HNX Stock Exchange, Thi Thu Bui, IJSRM Volume 09 Issue 02 February 2021 [www.ijsrm.in]
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