The Role of Female on Executive Boards and Firm Investment in Vietnam

Abstract

Women have more opportunities to engage in the labour market and be promoted to senior positions. Nevertheless, findings from the International Labour Organization (ILO) 2020 survey revealed a contrasting fact. In comparison, 73% of businesses acknowledge the presence of women in middle management roles and only 15% in senior leadership positions. Therefore, this study explores the effect of female participants on firm investment in Vietnamese listed firms over the 2010–2021 period. Using the Generalized Least Squares (GLS) estimation, the regression results show that the greater the number of females on executive boards, the higher the investment firm has. The potential explanation for this result is that the higher role of female participants enhances firm investment more efficiently through the monitoring mechanism.