Enhancing Financial Performance through Gender Equality

Gender equality is an important goal not only for Vietnam but also for all countries around the world, it is one of the criteria to evaluate whether a society is truly developing.This study examines the impact of gender equality on the Vietnamese commercial banks's financial performance, through the proportion of women in senior leadership positions.Specifically, drawing on agency theory and resource dependence theory, the authors developed a research model to test the relationship between the proportion of women on the board of directors, executive board, and supervisory board with the bank's financial performance index, as measured by the return on assets.The Generalized Least Squares method has been used along with appropriate tests to analyse a balanced panel dataset of 225 observations obtained from annual reports of 25 Vietnamese commercial banks in the period 2015-2023.The research results indicated that the proportion of women in senior leadership positions has a positive impact on the financial performance of commercial banks.This research provided additional insights for researchers and policymakers in Vietnam to promote gender equality in the banking sector, especially the role of women in senior leadership positions.Furthermore, it clarified the necessary factors to build a more diverse and effective governance environment, thereby supporting policies to develop the banking sector in a sustainable and comprehensive direction

Vietnamese · Economic Growth and Development · Gender Diversity and Inequality · Microfinance and Financial Inclusion

• Women in the boardroom and their impact on governance and performance☆

  Open Access•Renée B Adams, Daniel Ferreira•Journal of Financial Economics•2009

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