Unknown

Dataset Information

0

Does board gender diversity weaken or strengthen executive risk-taking incentives?


ABSTRACT: We investigate the effect of board gender diversity on managerial risk-taking incentives. Our results demonstrate that companies with stronger board gender diversity provide more powerful executive risk-taking incentives. It appears that female directors' risk aversion exacerbates managers' risk aversion, resulting in a sub-optimal level of risk-taking. To offset this tendency for too little risk, companies are induced to provide stronger risk-taking incentives. Specifically, an increase in board gender diversity by one standard deviation raises vega by 10.3%. Further analysis corroborates the results, including propensity score matching, entropy balancing, and an instrumental-variable analysis. Endogeneity appears to be unlikely, suggesting that female directors are not merely associated with, but probably bring about stronger risk-taking incentives.

SUBMITTER: Chatjuthamard P 

PROVIDER: S-EPMC8504771 | biostudies-literature |

REPOSITORIES: biostudies-literature

Similar Datasets

| S-EPMC6532857 | biostudies-literature
| S-EPMC9326254 | biostudies-literature
| S-EPMC5736567 | biostudies-literature
| S-EPMC7993444 | biostudies-literature
| S-EPMC7219537 | biostudies-literature
| S-EPMC4839773 | biostudies-literature
| S-EPMC7181402 | biostudies-literature
| S-EPMC7884858 | biostudies-literature
| S-EPMC4278375 | biostudies-literature
| S-EPMC7225402 | biostudies-literature