Gender Diversity in Top Management and Its Influence on Stakeholder Lawsuits in Thailand

Abstract

Manuscript type: Research paper
Research aims: This study examines the influence of female top
management on managing risk and on the potential for stakeholder
lawsuits against listed firms on the Stock Exchange of Thailand (SET).
Design/Methodology/Approach: In this study, female top management is
defined as a woman in the CEO role, and stakeholders refer primarily to
shareholders and employees. Data from 2020 to 2022 were collected from
the annual reports of the Top 100 Thai-listed firms. At the same time, a
proxy of corporate lawsuits is used to measure and disclose the frequency
of lawsuits from corporate stakeholders. Descriptive analysis, correlation
matrix, and multiple regression are used to analyse the data.
Research findings: The average number of stakeholder lawsuits per firm
is 5.732, with little yearly difference between 2020 and 2022. In addition,
female top management significantly positively influences such lawsuits
against top-listed Thai firms. To consider the relationship between board
composition and the potential for stakeholder lawsuits, the study also
finds a positive impact of board size and the presence of an international
board. At the same time, there is a negative relationship between the age
of top management and the likelihood of the emergence of stakeholder
lawsuits.
Originality/Value: The findings of the study demonstrate that agency
and stakeholder theories can be used to explain the positive impact of a
female CEO on stakeholder lawsuits filed against listed firms in Thailand.