Impact of Female Directorship on Firm Risks: Evidence From Vietnam

The paper studies the impact of female directors on firm risks in terms of earnings volatility and equity risk (including total risk, systematic risk and idiosyncratic risk) using a dataset of listed firms on Ho Chi Minh Stock Exchange. Empirical results show that higher percentage of women on board does not influence firm risks whereas female directors to some extent do matter the firms' equity risk. Specifically, chairwomen increase stocks' idiosyncratic risk whereas female CEOs reduce systemic risk of stocks. In addition, both chairwomen and female CEOs show no impact on earnings volatility and total risk of companies. The paper provides the state governance with additional empirical evidence to follow policies promoting gender equality throughout the country and aiming to achieve sustainable socio-economic development