Trang N.T. Ho, Dat Nguyen, Tu Le, Hang Thanh Nguyen and Son Tran
This study aims to investigate whether the changes in gender composition of bank board affects Vietnamese bank stability efficiency.
Abstract
Purpose
This study aims to investigate whether the changes in gender composition of bank board affects Vietnamese bank stability efficiency.
Design/methodology/approach
This research covers a panel of 27 commercial banks in Vietnam over a 14-year period from 2007 to 2020. The two-step system generalized method of moments is used to estimate the gender diversity–Vietnamese bank stability efficiency nexus.
Findings
The authors find that a greater degree of board gender diversification enhances bank stability efficiency and reduces bank risk-taking in Vietnam. The relationship between gender diversity and the stability efficiency of Vietnamese banks is still valid under the influence of regulatory capital sufficiency and during the financial crisis. These findings are robust to alternative proxies for risk indicators and consistent with the perspectives of stakeholder and behavior theory.
Originality/value
Although this research revisits the relationship between gender diversity and bank risk-taking, it is the first attempt to explore the role of women on board in enhancing the stability efficiency of banks, using the stochastic frontier approach. These findings shed light on the function of gender diversity as a governance instrument for mitigating risk in an emerging market context.
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Dao Van Le and Tuyen Quang Tran
This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.
Abstract
Purpose
This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.
Design/methodology/approach
The study employs a two-system generalized method of moments (GMM) estimator and data from 2012 to 2019 across all 63 provinces/cities of Vietnam.
Findings
The study finds that local budget retention rates significantly influence public investment, affecting scale and allocation efficiency. The reallocation of budgets between regions and from the central government to local levels incurs certain costs, often resulting in economically robust provinces experiencing reductions in their retention rates.
Practical implications
Recognizing the challenges of immediate structural budget changes due to cultural and historical factors, the study suggests a more gradual policy approach. It emphasizes the importance of policy predictability, as abrupt reductions in the retention rate lead to higher costs than gradual reductions, thus implementing budget policies with a clearer timeline. This study provides insight into local budget allocation regimes and their impact on productivity in transitioning countries.
Originality/value
First, the study provides fresh evidence of the impact of retention rate changes on TFP and its components in Vietnam. Second, the study provides insights into the mechanisms of the nexus of increased budget spending, capital efficiency and, most importantly, attaining improvement in education. We also offer further insights into inefficient budget allocation agents in Vietnam, especially in large cities, which should alert scholars to explore this topic further in the future.
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Linh Ha Nguyen, Tam Thanh Le, Hoa Quynh Ha, Hung Viet Nguyen, Minh Tue Bui, Anh Tran Xuan Pham, Anh Quang Bui and Huong Nguyet Trieu
This research examines how bank competition and corporate social responsibility (CSR) affect the stability of Vietnamese commercial banks.
Abstract
Purpose
This research examines how bank competition and corporate social responsibility (CSR) affect the stability of Vietnamese commercial banks.
Design/methodology/approach
Utilizing data collected from 24 commercial banks spanning the period from 2015 to 2022, the paper employs the two-step system generalized method of moments (SGMM) regression method to find the impact of competition and CSR on commercial banks’ stability in Vietnam.
Findings
The key findings are (1) increased competition boosts commercial bank stability; (2) economic and environmental CSR initiatives adversely affect bank stability, while social CSR has a positive impact; (3) seven other factors are also identified to enhance bank stability, including bank size, cost management efficiency, independent management, inflation, gross domestic product (GDP) growth, monetary policy and volatility time.
Originality/value
Prior studies have not concurrently incorporated both CSR and bank competition in their investigations of bank financial stability. Specifically, the comprehensive components of CSR remain underexplored, with a predominant focus on its environmental dimension. This research stands out as one of the few endeavors scrutinizing the influence of competition and CSR on commercial bank financial stability in Vietnam, with a detailed investigation of all three components of CSR.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2024-0316