CEO characteristics and bank performance: Case of Vietnamese commercial banks

Figures & data

Table 1. Variable definitions

Variables		Notation	Previous studies	Expected results	Proxy variables
Dependent variable	Bank performance	Return on assets (ROA)	Lam et al. (2013), Gupta and Mahakud (2020), Vo et al. (2020)		Profit after tax /Total assets
		Return on equity (ROE)			Profit after tax /Equity
Independent variables	CEO characterristics	CEO duality (CDUAL)	Phan and Tran (2017), Gupta and Mahakud (2020)	+	Value 1 if the CEO is also the chairman of the board, value of 0 if not
		Female CEO (CFEMALE)	Khan and Vieito (2013), Satriyo and Harymawan (2018), Jadiyappa et al. (2019), Gupta and Mahakud (2020), Vo et al. (2020)	-	value 1 if the CEO is female, value 0 if male
		CEO’s financial background (CFIN)	Lusardi and Mitchell (2006), Gupta and Mahakud (2020)	+	Value of 1 if the CEO has a financial background, value of 0 if not
		CEO tenure (CTENURE))	Lam et al. (2013), Gupta and Mahakud (2020)	+	The number of years in office of the CEO
		CEO age (CAGE)	Phan and Tran (2017), Gupta and Mahakud (2020)	-	Age of CEO, in years

Table 2. Descriptive statistics of the bank performance and CEO characteristics

Variable	Obs.	Mean	Std.dev	Min	Max
Bank performance
ROA	248	0.0071	0.0058	0.0001	0.0280
ROE	248	0.0830	0.0636	0.0002	0.2582
CEO characteristics
CDUAL	260	0.6307	0.4835	0.0000	1.0000
CFEMALE	239	0.1171	0.3221	0.0000	1.0000
CFIN	239	0.0041	0.0646	0.0000	1.0000
CTENURE	172	13.4651	7.6160	1.0000	29.0000
CAGE	210	47.9476	6.5213	34.0000	64.0000
Control variables
SIZE	248	32.4213	1.1431	29.4931	34.9553
CAP	248	0.0937	0.0621	0.0262	0.6140
GGDP	9	0.0592	0.0123	0.0291	0.0708

Table 3. Correlation coefficients between measures of CEO characteristics and bank performance

	ROA	ROE	CDUAL	CFEMALE	CFIN	CTENURE	CAGE	SIZE	CAP	GGDP
ROA	1.0000
ROE	0.8404*	1.0000
CDUAL	0.0737	0.0986	1.0000
CFEMALE	−0.1235*	−0.1673*	0.0781	1.0000
CFIN	0.0253	0.0411	0.0438	−0.0236	1.0000
CTENURE	−0.0036	0.1259*	0.0608	0.2118*	−0.1356*	1.0000
CAGE	0.2871*	0.2243*	0.0007	0.2697*	−0.0402	0.0119	1.0000
SIZE	0.2291*	0.5332*	−0.0778	−0.2040*	−0.0021	0.2713*	−0.0865*	1.0000
CAP	0.2433*	−0.1633*	0.0533	0.0485	−0.0185	−0.1846*	0.0475	−0.5579	1.0000
GGDP	−0.1067*	−0.0352	0.0208	0.0028	−0.1595*	−0.0496	0.0076	−0.0081	−0.0777	1.0000

* indicate significance at the 10% level.

Table 4. The effect of CEO characteristics on bank performance—Pooled OLS regression

	Dependent ROA	Dependent ROE
CDUAL	0.0020** (0.0007)	0.0264*** (0.0081)
CFEMALE	−0.0012 (0.0011)	−0.0252** (0.0029)
CFIN	0.0039 (0.0043)	0.0376 (0.0490)
CTENURE	0.0001 (0.0000)	−0.0021 (0.0005)
CAGE	0.0002* (0.0000)	0.0029*** (0.0006)
SIZE	0.2125*** (0.0032)	0.0406*** (0.0043)
CAP	0.1196*** (0.0132)	0.0390*** (0.1502)
GGDP	−0.0065 (0.0252)	−0.0607 (0.2873)
_cons	−0.1387** (0.0138)	−1.4124*** (0.1518)
Observations	167	167
Adj R–squared	0.5189	0.4733
Prob > F	0.0000	0.0000

Standard error in parentheses; *significant at the 10% level; **significant at the 5% level; ***significant at the 1% level.

Table 5. The effect of CEO characteristics on bank performance—FE and RE models

	Dependent ROA		Dependent ROE
	FE	RE	FE	RE
CDUAL	0.0001 (0.0006)	0.0007 (0.0006)	0.0081 (0.0046)	0.0155** (0.0079)
CFEMALE	−0.0036*** (0.0014)	−0.0017 (0.0013)	−0.0402*** (0.0182)	−0.0208 (0.0152)
CFIN	0.0015 (0.0034)	0.0029 (0.0047)	0.0034 (0.0011)	0.0396 (0.0506)
CTENURE	0.0001 (0.0003)	0.0001 (0.0001)	0.0013 (0.0008)	0.0002 (0.0006)
CAGE	−0.0001 (0.0032)	0.0002** (0.0776)	0.0001 (0.0045)	0.0016** (0.0007)
SIZE	0.0069*** (0.0007)	0.0053*** (0.0005)	0.0713*** (0.0091)	0.0503*** (0.0060)
CAP	0.1185*** (0.0425)	0.1137*** (0.0121)	0.3927*** (0.1550)	0.3406** (0.1345)
GGDP	0.0030 (0.0199)	−0.0149 (0.0202)	0.0067 (0.2465)	−0.1296 (0.2425)
_cons	−0.2297*** (0.0240)	−0.1736*** (0.0184)	−0.2873*** (0.2974)	−1.6547*** (0.2022)
Observations	167	167	167	167
Adj R–squared	0.3098	0.4182	0.3635	0.4373
Prob > F	0.0000	0.0000	0.0000	0.0000

Standard error in parentheses; *significant at the 10% level; **significant at the 5% level; ***significant at the 1% level.

Table 6. The effect of CEO characteristics on bank performance—FGLS regression

	Dependent ROA	Dependent ROE
CDUAL	0.0020** (0.0006)	0.0264*** (0.0079)
CFEMALE	−0.0012 (0.0011)	−0.0252** (0.0126)
CFIN	0.0029 (0.0041)	0.0376 (0.0477)
CTENURE	0.0001 (0.0000)	−0.0021 (0.0005)
CAGE	0.0002*** (0.0000)	0.0029*** (0.0006)
SIZE	0.0037*** (0.0003)	0.0406*** (0.0041)
CAP	0.1196*** (0.0128)	0.3690*** (0.1461)
GGDP	−0.0065 (0.0246)	−0.0607 (0.2795)
_cons	−0.1387** (0.1387)	−1.4124*** (0.1476)
Observations	167	167
Prob > F	0.0000	0.0000

Standard error in parentheses; *significant at the 10% level; **significant at the 5% level; ***significant at the 1% level.

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