Research purpose:
The aim of the research is to explore female chief executive officers’ (CEOs) effects on capital structure and firm performance in Vietnam, which is a unique context shaped by gender roles and economic transition.
Research motivation:
While overseas scholarship suggests that female-led firms exhibit lower risk- taking, stronger governance compliance, and potentially enhanced performance, little is known about how these dynamics are enacted in Vietnam, a transitioning, export-led economy with deeply embedded cultural tradition. This paper fills this gap by sharing empirical evidence of Vietnam’s listed firms.
Research design, approach, and method:
The research utilises panel data from eighty-six of the firms that have been listed in Vietnam through Vietstock in the period 2020 to 2024. We used regression modelling to evaluate potential relationships between firm level female leadership and the outcomes of Return on Assets (ROA), capital structure and liquidity. Our selected control variables were firm size, firm age, industry, board size, board independence, profitability, and ownership structure.
Main findings:
Empirical evidence demonstrates that female CEOs influences financial performance positively, namely increasing ROA and liquidity, and using more conservative capital structures with lower leverage usage. The findings highlight the critical role of gender diversity in executive leadership, positioning female CEOs as key catalysts for sustainable growth and resilience in Vietnam’s corporate landscape, setting a foundation for further exploration and policy development.
Practical/managerial implications:
These findings suggest that gender diversity among senior executives enhances profitability and financial performance, underlining women as a strategic leader asset. To policymakers, the findings reinforce policies favoring women in leadership positions; to corporations, it focuses attention on the capacity of women CEOs to drive growth through savvy financial stewardship.