Female Directors and Investment Efficiency: New Evidence from an Emerging Market

Prior studies show that the effect of female directors on corporate investment efficiency is mixed. This article investigates this relationship in a weak corporate governance setting. With a data of 4,653 firm-years from 582 firms listed in Vietnam during the period 2009–2020, we find that female di...

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Bibliographic Details
Published in:Indian journal of corporate governance 2023-12, Vol.16 (2), p.200-217
Main Authors: Dao, Thi Huong, Tran, Quoc Trung, Vuong, Thi Bich Nga, Le, Son Dai
Format: Article
Language:English
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Summary:Prior studies show that the effect of female directors on corporate investment efficiency is mixed. This article investigates this relationship in a weak corporate governance setting. With a data of 4,653 firm-years from 582 firms listed in Vietnam during the period 2009–2020, we find that female directors decrease corporate investment efficiency through increasing underinvestment and they have no significant effect on overinvestment. Moreover, the negative relationship between female directors and investment efficiency is stronger in state-owned firms.
ISSN:0974-6862
2454-2482
DOI:10.1177/09746862231205649