Dr. RIGOBERT Marie Josephe Dr. MBAREK Sondes Dr. MAI Huu Minh
Dr. RIGOBERT Marie Joséphe Dr. MBAREK Sondes Dr. MAI Huu Minh Download here: ASEAN WOMEN CEO JULY 2014
Professor EDC Paris Business School, France Professor ICN Business School, France IFRC Founder & CEO
Professor Paris Créteil University, France
 
     

 

The WOMEN CEO project is the first step of a larger project on the relationship between performance and governance. We are doing in parallel  other topics such as women on board, capital held by the state, or foreign investors, or family ownership. Starting from Vietnam, we extend this project to global listed companies.

This report compares companies run by woman CEO in ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam), and other companies in term of number, market capitalisation and stock performance following different group levels: country, sector, and size.

We calculate WOMEN CEO Equal Weighted indexes for countries having at least 10 companies led by woman (Malaysia, Philippines, Singapore, Thailand and Vietnam. and the WOMEN CEO ASEAN index comprising all companies. These indexes start at 1,000 at December 31, 2008.

By country

In ASEAN, 120 of 3,553 companies are managed by WOMEN CEO, i.e. 3.38% compared to 5% in the USA (S&P 500 index). The Philippines (8.05%), Vietnam (6.71%) and Thailand (3.77%) are countries having the best representation. The total capitalisation percentage of these companies is higher for Vietnam (17.57%) and Singapore (10.30%) than the overall average 4.80%. In the Table 1, in green (respectively in red) are companies where concerned statistics are above (respectively below) the average.

In term of performance, we calculate absolute and excedent annual performance average by country and for all ASEAN companies from December 31, 2008 to June 30, 2014. Excedent performance is defined by the difference of performance between the company (or index) and the FTSE ASEAN index.

Concerning ASEAN country WOMEN CEO indexes, the absolute annual performance average is 36.32% over the periode 2009-2014, and is significantly higher than the performance of the FTSE ASEAN benchmark index (17.54%). The best performers are WOMEN CEO Philippines (62.74%), Malaysia (42.04%), and Thailand (37.37%). The WOMEN CEO ASEAN index performance is 32.31% and is also superior and exceeds by 14.78% per year.

 

 

Table 1: ASEAN Women CEO by country


Number of companies Market Capitablisation ($Bn) Excedent*
Country All WOMEN CEO % Nb All WOMEN CEO % Performance
INDONESIA 458 3 0.66% 458 408.07 2.06 0.50% 4.05%
MALAYSIA 924 12 1.30% 924 530.88 9.58 1.80% 18.66%
PHILLIPINES 236 19 8.05% 236 249.07 10.16 4.08% 35.21%
SINGAPORE 706 21 2.97% 706 681.51 70.17 10.30% 8.48%
THAILAND 583 22 3.77% 583 408.97 10.50 2.57% 14.97%
VIETNAM 641 43 6.71% 641 54.15 9.51 17.56% -8.33%
ASEAN 3,548 120 3.38% 3,548 2,332.64 111.98 4.80% 10.38%

Source: IFRC Vietnam, www.globalwomenceo.com

 

 

Table 2: ASEAN Women CEO indexes performance


Indexes % NATIONAL INDEXES % Diff FTSE ASEAN Diff

Source: IFRC Vietnam, www.globalwomenceo.com

 

Comparison shows WOMEN CEO Country indexes also outperform their respective national index. Abnormal performance per country is always positive, the highest differences concern Philippines (36.10%), Malaysia (26.82%). In average the WOMEN CEO Country indexes outperform 19.69% per year..

WOMEN CEO ASEAN companies outperform FTSE ASEAN index 18.78% per year in average over the period 2009-2014. Vietnamese companies underperform FTSE ASEAN index, and the best performer countries are the Philippines and Malaysia with 45.20%, and 24.50% excedent return per year respectively.

By size

ASEAN companies are ranked by market capitalisation in decreasing order first. Large Caps are first companies of which accumulated capitalisation covers 80% of the total market, Mid Caps are next 15%, and Small Caps include the remaining 5%. The result of this ranking defines 344 Large, 804 Mid and 2,400 Small capitalisations.

Nine of 120 ASEAN WOMEN CEO companies, i.e. 7.50%, are Large Caps, and 111 are Mid and Small Caps. Most of published studies on the WOMEN CEO performance are based on Large Caps, and we can see in the Table 3, 92.50% of Women CEO in ASEAN managed Mid and Small Caps companies.

Higher performances concern Large and Mid Caps with 13.40% and 17.91% of annual excedent return respectively. Small Caps excedent performance is always positive but slightly lower the average.

 

 

 

Table 3: ASEAN Women CEO by size


Number of companies Market Capitablisation ($Bn) Excedent*
Size All WOMEN CEO % Nb All WOMEN CEO % Performance
LARGE CAPS 344 9 2.62% 344 1,866.00 75.63 4.05% 13.13%
MID CAPS 804 22 2.74% 804 349.97 10.89 3.11% 13.20%
SMALL CAPS 2,400 89 3.71% 2400 116.67 25.46 21.82% 8.31%
ASEAN 3,548 120 3.38% 3,548 2,332.64 111.98 4.80% 10.38%

Source: IFRC Vietnam, www.globalwomenceo.com

 

By sector

Concerning sectors, Consumer Services (6.89%), and Health Care (5.43%) are industries where women CEO are most numerous, and inversely Utilities (1.43%) is the most under-represented compared to the general representation ratio 3.38%.

Technology (18.36%) and Industrials (17.67%) are sectors with highest excedent performance respectively compared to the sample average of 10.38%. Utilities (-15.81%) is the most negative excedent performance among others: Telecommunications, Health Care... . Other sectors don’t have enough women CEO to conclude statistically.

 

 

Table 4: ASEAN Women CEO by sector


Number of companies Market Capitablisation ($Bn) Excedent*
Sector All WOMEN CEO % Nb All WOMEN CEO % Performance
OIL & GAS 112 2 1.79% 112 167.70 0.14 0.08% 13.46%
BASIC MATERIALS 350 13 3.71% 350 93.13 1.41 1.51% 10.95%
INDUSTRIALS 1,070 24 2.24% 1070 358.45 17.95 5.01% 17.67%
CONSUMER GOODS 593 18 3.04% 593 325.03 6.61 2.03% 1.70%
HEALTH CARE 92 5 5.43% 92 52.07 0.56 1.08% -0.80%
CONSUMER SERVICES 334 23 6.89% 334 266.56 16.64 6.24% 2.57%
TELECOMMUNICATIONS 40 2 5.00% 40 197.57 51.81 26.22% -5.56%
UTILITIES 70 1 1.43% 70 87.45 0.79 0.90% -15.81%
FINANCIALS 679 25 3.68% 679 742.53 14.50 1.95% 12.21%
TECHNOLOGY 208 7 3.37% 208 42.15 1.57 3.72% 18.36%
ASEAN 3,548 120 3.38% 3,548 2,332.64 111.98 4.80% 10.38%

Source: IFRC Vietnam, www.globalwomenceo.com

 

Conclusion

Our first results clearly show that the companies grouped by country, sector, or size have a superior return compared to their national index or ASEAN area benchmark index. They overperform about 15% per year from 2009.

The WOMEN CEO ASEAN Indexes Series will be extended to the capitalisation weighting, and the tradable WOMEN CEO ASEAN 40 ndex. This index could be an investment opportunity for financial products. Their figures and other information will be updated on the www.globalwomenceo.com website..

Next steps

With our academic partners, VCREME, ICN, EDC and SKEMA Business Schools (France) and University of Economics and Laws (Vietnam), we are trying to explain why WOMEN CEO companies outperform by controling other corporate performance measures (fundamental ratios for example), and factors such as gender, and CEO profil (experience, education, compensation, ...).

In the second step, we will study the Executives Board of each company, and calculate the presence ratio of women. Like women CEO companies study, we will analyse the relation of the firm characteristics, the executive profile and the stock market or corporate performance of the company for about 40,000 companies of 41 countries of our universe.

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  • Alpha

    Alpha is a coefficient that measures the performance, positive or negative, produced by an index relative to what could justify risk. A positive alpha indicates the profitability of the fund or portfolio or index is higher than its market and vice versa.

    The estimate of alpha is given by the Ordinary Least Squares in the Capital Asset Pricing Model (CAPM).

  • Base date

    The base date is the reference date for an index. It is the date from which the base value is chosen. The base date could be different to the first date.

  • Base value

    For an index, the base value is often arbitrary figure used as the initial value. Generally, it is 100 or 1,000.

  • Benchmark

    Reference Index (or Benchmark) is an index representing a market, a country, a region, ...

    It is characterized by a high number of values, variables and generally high level of representation in terms of capitalization and trading volume.

  • Beta

    The beta of a stock or an index measures the risk against a benchmark market that can be represented by a benchmark index. An index with a low risk will have low beta and vice versa. The beta is estimated by the CAPM model using ordinary least squares (OLS).

  • Blue Chip

    Blue Chip index is a composite of a small number, usually fixed to a core value, of stocks​​. It is characterized by a level of high representation in terms of market capitalization and trading volume.

  • Book-to-Price

    A ratio compares the book value of the company's assets to its price. Defined as the company's ordinary equity capital (from the most recent fiscal year end) divided by the company's market capitalisation at the review date.

  • CAB (Current account balance)

    Current account is all transactions other than those in financial and capital items. The major classifications are goods and services, income and current transfers. The focus of the BOP is on transactions (between an economy and the rest of the world) in goods, services, and income.

  • Capping

    The weight value ​​in an index could be capped to reduce their impact on the overall index performance and meet the requirements of European Directives (UCITS IV), for example.

  • Composition review

    The composition of the indices is reviewed regularly at the intervals specified in the rules. The intervals could be monthly, quarterly and semi-annually.

  • Arbitrage

    Attempting to profit by exploiting price references of identical or similar commodities or financial instruments on different markets or in different forms. Arbitrage opportunities (If they exist) provide riskless profit opportunities.

  • At the money

    A situation where an option's strike price is identical to the price of the underlying security.

  • Calendar spread

    An option transaction consisting of the purchase of an option with a given expiration an the sale of an otherwise identical option with a different expiration.

  • Call

    Call option or "Call" is the right to "call", or buy, the stock or index to someone else.

  • Call Option

    A call option gives the buyer of the option the right but not the obligation to buy the underlying futures contract at a specified price.

  • Cash Settlement

    Future contract that does not permit delivery, rather the contracts are settled at the cash price.

  • Cash-Backed Call

    The investor buys a call option, and sets aside in a risk-free interest-bearing instrument enough cash to exercise it.

    The call guarantees a maximum purchase price during the life of the option, while leaving the investor free to take advantage of any downturn that might occur in the stock price.

  • Clearing House

    The clearinghouse financially guarantees all contracts on the exchange and manages the financial settlement of futures and options contract.

  • Employment

    Proportion of a country’s population that is employed. Ages 15 and older are generally considered the working-age population.

  • LP (Population)

    Population is a World Bank estimate for mid-year population, based, in most cases, on a de facto definition, which counts all residents regardless of legal status or citizenship.

  • LUR (Unemployment rate)

    Unemployment rate can be defined by either the national definition, the ILO harmonized definition, or the OECD harmonized definition. The OECD harmonized unemployment rate gives the number of unemployed persons as a percentage of the labor force (the total number of people employed plus unemployed). [OECD Main Economic Indicators, OECD, monthly] As defined by the International Labour Organization, "unemployed workers" are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work.

  • PCPI (Inflation, average consumer prices)

    Inflation is a sustainable increase in the general price level, often measured by an index of consumer prices. The rate of inflation is the percentage change in the price level in a given period.

    Data for inflation are averages for the year, not end-of-period data.

  • Alpha

    Alpha is a coefficient that measures the performance, positive or negative, produced by an index relative to what could justify risk. A positive alpha indicates the profitability of the fund or portfolio or index is higher than its market and vice versa.

    The estimate of alpha is given by the Ordinary Least Squares in the Capital Asset Pricing Model (CAPM).

  • Ask price

    The ask price or offer price is the price a seller is willing to accept for a security.

  • Beta

    The beta of a stock or an index measures the risk against a benchmark market that can be represented by a benchmark index. An index with a low risk will have low beta and vice versa. The beta is estimated by the CAPM model using ordinary least squares (OLS).

  • Bid Ask Spread

    The Bid Ask Spread is the difference in price between the highest price that a buyer is willing to pay (Best Ask) for an asset and the lowest price for which a seller is willing to sell it (Best Bid).

  • Bid price

    The bid price is the price a buyer is willing to pay for a security.

  • Currency

    Indexes are sometimes calculated in currencies other than the local currency to measure the effective performance of a foreign investor buying or selling shares from another currency.

    • CODE, Currency, Country
    • AED, United Arab Emirates dirham, United Arab Emirates
    • ARS, Argentine peso, Argentina
    • AUD, Australian dollar, Australia
    • BAM, Bosnia and Herzegovina convert, Bosnia and Herzegovina
    • BDT, Bangladeshi taka, Bangladesh
    • BGN, Bulgarian lev, Bulgaria
    • BHD, Bahraini dinar, Bahrain
    • BMD, Bermudian dollar (customarily, Bermuda
    • BRL, Brazilian real, Brazil
    • BWP, Botswana pula, Botswana
    • CAD, Canadian dollar, Canada
    • CHF, Swiss franc, Switzerland
    • CLP, Chilean peso, Chile
    • CNY, Chinese yuan, China (Mainland)
    • COP, Colombian peso, Colombia
    • CRC, Costa Rican colon, Costa Rica
    • CZK, Czech koruna, Czech Republic
    • EGP, Egyptian pound, Egypt
    • EUR, Euro, 17 European Union countries
    • GBP, Pound sterling, United Kingdom
    • GHS, Ghanaian cedi, Ghana
    • HKD, Hong Kong dollar, Hong Kong Special Administrative Region
    • HRK, Croatian kuna, Croatia
    • HUF, Hungarian forint, Hungary
    • IDR, Indonesian rupiah, Indonesia
    • ILS, Israeli new sheqel, Israel
    • INR, Indian rupee, Bhutan
    • ISK, Icelandic króna, Iceland
    • JMD, Jamaican dollar, Jamaica
    • JOD, Jordanian dinar, Jordan
    • JPY, Japanese yen, Japan
    • KES, Kenyan shilling, Kenya
    • KRW, South Korean won, South Korea
    • KWD, Kuwaiti dinar, Kuwait
    • KZT, Kazakhstani tenge, Kazakhstan
    • LAK, Lao kip, Laos
    • LKR, Sri Lanka rupee, Sri Lanka
    • LVL, Latvian lats, Latvia
    • MAD, Moroccan dirham, Morocco
    • MKD, Macedonian denar, Republic of Macedonia
    • MNT, Mongolian tugrik, Mongolia
    • MUR, Mauritian rupee, Mauritius
    • MXN, Mexican peso, Mexico
    • MYR, Malaysian ringgit, Malaysia
    • NGN, Nigerian naira, Nigeria
    • NOK, Norwegian krone, Norway
    • NZD, New Zealand dollar, Cook Islands
    • OMR, Omani rial, Oman
    • PAB, Panamanian balboa, Panama
    • PEN, Peruvian nuevo sol, Peru
    • PHP, Philippine peso, Philippines
    • PKR, Pakistani rupee, Pakistan
    • PLN, Polish złoty, Poland
    • QAR, Qatari rial, Qatar
    • RON, Romanian new leu, Romania
    • RSD, Serbian dinar, Serbia
    • RUB, Russian rouble, Russia
    • SAR, Saudi riyal, Saudi Arabia
    • SEK, Swedish krona/kronor, Sweden
    • SGD, Singapore dollar, Singapore
    • THB, Thai baht, Thailand
    • TND, Tunisian dinar, Tunisia
    • TRY, Turkish lira, Turkey
    • TWD, New Taiwan dollar, Taiwan and other islands that are under the effective control of the Republic of China (ROC)
    • TZS, Tanzanian shilling, Tanzania
    • UAH, Ukrainian hryvnia, Ukraine
    • USD, United States dollar, USA
    • VND, Vietnam Dong, Vietnam

  • ETF Products

    Trackers or ETFs ( Exchange Traded Funds) are mutual funds that replicate the performance of an index. Trackers (or ETFs) work like index funds. As the peculiarity of the trackers is to be continuously traded, you can buy in cash or use SRD (Deferred Settlement Service) and sell like stocks.

  • ISIN

    An International Securities Identification Number (ISIN) uniquely identifies a security. Its structure is defined in ISO 6166

  • Book-to-Price

    A ratio compares the book value of the company's assets to its price. Defined as the company's ordinary equity capital (from the most recent fiscal year end) divided by the company's market capitalisation at the review date.

  • CAB (Current account balance)

    Current account is all transactions other than those in financial and capital items. The major classifications are goods and services, income and current transfers. The focus of the BOP is on transactions (between an economy and the rest of the world) in goods, services, and income.

  • Counterparty

    A trade can take place between two or more counterparties. Usually one party to a trade refers to its trading partners as counterparties.

  • Current ratio

    Current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities.

    If a company's current ratio is in this range, then it generally indicates good short-term financial strength. If current liabilities exceed current assets (the current ratio is below 1), then the company may have problems meeting its short-term obligations.

  • Debt to Assets

    This ratio calculates the proportion of a company's debt to its assets.

  • Debt To Capital

    This ratio measure total debt of a company toward its total capital.

  • Debt-to-asset ratio

    An indicator of financial leverage. It tells you the percentage of total assets that were financed by creditors, liabilities, debt.

  • Dividend Yield

    Dividend yield is a term to measure how much cash flow you earn for each dollar (or other currency) invested in an equity position.

  • Base date

    The base date is the reference date for an index. It is the date from which the base value is chosen. The base date could be different to the first date.

  • Base value

    For an index, the base value is often arbitrary figure used as the initial value. Generally, it is 100 or 1,000.

  • Benchmark

    Reference Index (or Benchmark) is an index representing a market, a country, a region, ...

    It is characterized by a high number of values, variables and generally high level of representation in terms of capitalization and trading volume.

  • Blue Chip

    Blue Chip index is a composite of a small number, usually fixed to a core value, of stocks​​. It is characterized by a level of high representation in terms of market capitalization and trading volume.

  • Capping

    The weight value ​​in an index could be capped to reduce their impact on the overall index performance and meet the requirements of European Directives (UCITS IV), for example.

  • Composition review

    The composition of the indices is reviewed regularly at the intervals specified in the rules. The intervals could be monthly, quarterly and semi-annually.

  • Corporate actions

    Securities transactions (or DTS), or Corporate Actions in English, describe the events involved in the life of a securities

    - Dividend payment

    - Capital increase

    - OPA...

    We can distinguish operations that affect the course or the number of titles that require an adjustment in the indices.

  • Free float

    Free float is a proportion (often expressed as a percentage) of shares that are actually traded in the market. This is a factor that’s taken into account of the weight ​​of an index, especially Blue Chip or Tradable indexes.

  • Free float banding

    The floating, in the free float of a listed company is part of actions that can effectively affect the stock market. It can be expressed in value or more frequently as a percentage of capitalization.

    It is difficult to estimate a given floating due to the absence of certain information. It is necessary to round the estimate to smooth out errors.

    The float will be rounded to 5%, 10% or more depending on the data providers. STOXX even offers a float to two decimal places.

  • Leverage Indice

    The leverage index is used to amplify the rise or fall of the market, in the same or opposite direction with the market.

    There are two main types of leverage indices:

    - The "Leverage" Indices or Bull

    - The "Short" Indices or Bear

  • Bear Call Spread

    A bear call spread contains two calls with the same expiration but different strikes.

    The strike price of the short call is below the strike of the long call, which means this strategy will always generate a net cash inflow (net credit) at the outset.

  • Bear Put Spread

    A bear put spread contains two puts with the same expiration but different strikes.

    The strike price of the short put is below the strike of the long put. Because of the way the strike prices are selected, this strategy requires a net cash outlay (net debit) at the outset.

  • Bear Spread Spread

    This strategy is the combination of a bear call spread and a bear put spread.

    This strategy consists of being short one call and long another call with a higher strike; also long one put and short another put with a lower strike

  • Bull Call Spread

    A bull call spread contains two calls with the same expiration but different strikes.

    The strike price of the short call is higher than the strike of the long call, which means this strategy will always require an initial outlay (debit). The short call's main purpose is to help pay for the long call's upfront cost.

  • Bull Put Spread

    A bull put spread involves being short a put option and long another put option with the same expiration but with a lower strike.

    The strike price of the short put is higher than the strike of the long put. Because of the relationship between the two strike prices, the investor will always receive a premium (credit) when initiating this position.

  • Bull Spread Spread

    This strategy consists of being long one call and short another call with a higher strike, and short one put with a long put on a lower strike.

    Typically, the call strikes are above and the put strikes below the current level of underlying stock, and the distance between the call strikes equals the distance between the put strikes. All options must have the same expiration date.

  • Cash-Secured Put

    The cash-secured put involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock.

    The goal is to be assigned and acquire the stock below today's market price. Whether or not the put is assigned, all outcomes are presumably acceptable. The premium income will help the net results in any event.

  • Collar

    An investor writes a call option and buys a put option with the same expiration as a means to hedge a long position in the underlying stock.

    The investor will select a call strike above and a long put strike below the starting stock price.There is latitude, but the strike choices will affect the cost of the hedge as well as the protection it provides. These strikes are referred to as the 'floor' and the 'ceiling' of the position, and the stock is 'collared' between the two strikes.

  • Covered Call

    An investor who buys or owns stock and writes call options in the equivalent amount can earn premium income without taking on additional risk.

    The premium received adds to the investor's bottom line regardless of outcome. It offers a small downside 'cushion' in the event the stock slides downward and can boost returns on the upside.

  • Covered Put

    The idea is to sell the stock short and sell a deep-in-the-money put that is trading for close to its intrinsic value. 

    The profit would then be the interest earned on what is essentially a zero outlay. The danger is that the stock rallies above the strike price of the put, in which case the risk is open-ended.