Effect of board diversity on firm performance in different social contexts: evidence from Vietnam and Australia

The business case for board diversity is contrasted in two different social contexts in this thesis. Specifically, the effect of differences in gender, ethnicity, and the age of the directors may have on firm financial performance is compared across a sample of Vietnamese and Australian listed companies. The research employs the most efficient panel data regression method using a selection procedure of fixed/random effects testing. Regression output indicates that the gender and ethnic diversity of the board more positively influences Tobin’s Q in Vietnam than they do in Australia while age diversity does not. Additionally, ethnic diversity more positively influences return on assets in Vietnam than in Australia, whereas age diversity more positively affects return on assets in Australia than in Vietnam. The result also suggests that there is no difference in the impact of gender diversity on return on assets across the two nations. These findings will have important implications for global harmonisation, the convergence of corporate governance, in general, and, in particular, recommendations about board diversity.