INFLUENCE OF CEO GENDER ON CORPORATE RISK-TAKING AND CAPITAL ALLOCATION EFFICIENCY

Authors

  • Saba Tabassum Tabassum Faculty of Management Sciences, Riphah International University, Islamabad. Pakistan
  • Zeeshan Ghafoor Ghafoor Faculty of Management Sciences, Riphah International University, Islamabad. Pakistan
  • Aamer Shareef Shareef Faculty of Management Sciences, Riphah International University, Islamabad. Pakistan

DOI:

https://doi.org/10.37435/NBR23042001

Keywords:

CEO gender, Corporate risk, Capital allocation efficiency, Resource allocation efficiency

Abstract

ABSTRACT

 

Purpose: This paper aims to study the impact of CEO gender on firm’s risk taking decisions and related corporate resource allocation efficiency using data collected from UK and USA based firms.

References

Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on

governance and performance. Journal of financial economics, 94(2), 291-

E

Akerlof, G. A., & Kranton, R. E. (2000). Economics and identity. The quarterly journal

of economics, 115(3), 715-753.

Altonji, J. G., & Blank, R. M. (1999). Race and gender in the labor market. Handbook of

labor economics, 3, 3143-3259.

Arrow, KJ, (1984). The theory of risk aversion. Individual Choice under Certainty and

Uncertainty, Collected Papers of KJ Arrow. Harvard University Press,

Cambridge, MA, pp. 147–171.

Badru, B. O., Ahmad-Zaluki, N. A., & Wan-Hussin, W. N. (2019). Women on

corporate boards and allocation of capital raised through IPOs. Management

Decision, 57(3), 547-568

Bajtelsmit, V. L., & Bernasek, A. (1996). Why do women invest differently than

men?. Financial Counseling and Planning, 7.

Bajtelsmit, V. L., & VanDerhei, J. A. (1996). Risk Aversion and Retirement Income

Adequacy. Forthcoming in Positioning Pensions for the Twenty-First

Century.17

Berg, J. (1999). van den (1999). Individual preferences in the aesthetic evaluation of natural

landscapes.

Bertrand, M., Kramarz, F., Schoar, A., & Thesmar, D. (2004). Politically connected

CEOs and corporate outcomes: Evidence from France. Unpublished

manuscript.

Bertrand, M., & Schoar, A. (2003). Managing with style: The effect of managers on

firm policies. The Quarterly journal of economics, 118(4), 1169-1208.

Calvet, L.E. & Sodini, P., (2014). Twin picks: disentangling the determinants of risktaking in household portfolios. J. Finance 69, 867–906.

Campello, M. (2007). Asset tangibility and firm performance under external financing:

evidence from product markets. Available at SSRN 971170.

Chandra, S., & Shadel, W. G. (2007). Crossing disciplinary boundaries: Applying

financial portfolio theory to model the organization of the selfconcept. Journal of Research in Personality, 41(2), 346-373.

Claessens, S., Djankov, S.,& Nenova, T. (2000). Corporate Risk around the World. Policy

Research Working Paper;No. 2271. World Bank, Washington, DC. © World Bank.

https://openknowledge.worldbank.org/handle/10986/19855

Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic

literature, 47(2), 448-74.

Durnev, A., Morck, R., & Yeung, B. (2004). Value‐enhancing capital budgeting and

firm‐specific stock return variation. The Journal of Finance, 59(1), 65-105.

Elsaid, E., & Ursel, N. D. (2011). CEO succession, gender and risk taking. Gender in

Management: An International Journal, 26(7), 499-512.

Elsaid, E., & Ursel, N. D. (2011). CEO succession, gender and risk taking. Gender in

Management: An International Journal, 26(7), 499-512.

Faccio, M., Marchica, M. T., & Mura, R. (2016). CEO gender, corporate risk-taking,

and the efficiency of capital allocation. Journal of Corporate Finance, 39, 193-

Fazzari, S., Hubbard, R. G., & Petersen, B. (1988). Investment, financing decisions, and

tax policy. The American Economic Review, 78(2), 200-205.

Forbes, D.P., (2005). Are some entrepreneurs more overconfident than others? Journal

of business venturing. 20, 623–640.

Francoeur, C., Labelle, R., & Sinclair-Desgagné, B. (2008). Gender diversity in

corporate governance and top management. Journal of business ethics, 81, 83-

Γκουρνέλου, Ε. (2017). Gender diversity and firm performance: evidence from

Greece (Doctoral dissertation).

Gulamhussen, M. A., & Santa, S. F. (2010). Women in boardrooms and their influence on

performance and risk taking. Harvard University Working Paper.18

Hambrick, D. C. (1994). Top Management Groups: A Conceptual Integration and

Reconsideration of the “team” label. Research in Organizational Behavior, 16,

-171.

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a

reflection of its top managers. Academy of management review, 9(2), 193-206.

Hellriegel, D., Slocum, J. W., & Woodman, R. W. (1998). Organizational behavior,

cincinnati. Ohio, South+ Western college Publ.

Hinz, R. P., McCarthy, D. D., & Turner, J. A. (1996). Are women conservative

investors? Gender differences in participant-directed pension investments.

Hubbard, M. (2007). Entitlement, rules, coordination, club, market and hierarchy: General

budget support practice and theory; implications of results of the joint evaluation of

general budget support (No. 2007/39). Research Paper, UNU-WIDER, United

Nations University (UNU).

Huang, J., & Kisgen, D. (2012). Gender and Corporate Finance, forthcoming. Journal

of Financial Economics, 108(3), 822-839.

Jianakoplos, N. A., & Bernasek, A. (1996). Are Women More Risk Averse?" Working

Papers in Economics and Political Economy, Colorado State University.

John, K., Litov, L., & Yeung, B. (2008). Corporate governance and risk‐taking. The

journal of finance, 63(4), 1679-1728.

Kotiranta, A., Kovalainen, A., & Rouvinen, P. (2007). Female leadership and firm

profitability. EVA analysis, 3, 2007.

Kovalchik, S., Camerer, C.F., Grether, D.M., Plott, C.R., & Allman, J.M., (2005). Aging

and decision making: a comparison between neurologically healthy elderly

and young individuals. J. Econ. Behav. Organ. 58, 79–94.

Liang, X., Ndofor, H. A., Priem, R. L., & Picken, J. C. (2010). Top management team

communication networks, environmental uncertainty, and organizational

performance: A contingency view. Journal of Managerial issues, 436-455.

Liu, C. (2021). CEO gender and employee relations: Evidence from labor lawsuits.

Journal of Banking and Finance, 128, 106136.

https://doi.org/10.1016/j.jbankfin.2021.106136

Machuki, V. N., & Aosa, E. (2011). The influence of the external environment on the

performance of publicly quoted companies in Kenya.

Machuki, V. N., & Aosa, E. O., Letting, D., & Nicholas, K. (2012). Firm-level

institutions and performance of publicly quoted companies in

Kenya. International Journal of Humanities and Social Science, 2(21), 298-312.

Madison, W. I. (2000). University of Wisconsin-Madison. Wisconsin Center for

Education Research, National Center on Effective.

Malmendier, U., & Tate, G. (2005). CEO overconfidence and corporate

investment. The journal of finance, 60(6), 2661-2700.

Malmendier, U., & Tate, G. (2008). Who makes acquisitions? CEO overconfidence

and the market's reaction. Journal of financial Economics, 89(1), 20-43.19

Marianne, B. (2011). New perspectives on gender. In Handbook of labor economics (Vol.

, pp. 1543-1590). Elsevier.

Marimuthu, M., & Kolandaisamy, I. (2009). Can Demographic Diversity in Top

Management Team Contribute for Greater Financial Performance An

Empirical Discussion.

Marshall, A. (1890), Principles of Economics, Macmillan, London

Martin, A. D., Nishikawa, T., & Williams, M. A. (2009). CEO gender: Effects on

valuation and risk. Quarterly Journal of Finance & Accounting, 48(3).

Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman Jr, H. J. (1978). Organizational

strategy, structure, and process. Academy of management review, 3(3), 546-562.

Miller, K. I., & Monge, P. R. (1986). Participation, satisfaction, and productivity: A

meta-analytic review. Academy of management Journal, 29(4), 727-753.

Naseem, M. A., Lin, J., Rehman, R. U., Ahmad, M. I., & Ali, R. (2019). Does capital

structure mediate the link between CEO characteristics and firm

performance?. Management Decision, 58(1), 164-181.

Nielsen, B. B., & Nielsen, S. (2013). Top management team nationality diversity and

firm performance: A multilevel study. Strategic Management Journal, 34(3),

-382.

Nielsen, S. (2010). Top management team diversity: A review of theories and

methodologies. International Journal of Management Reviews, 12(3), 301-316.

Niessen, A., & Ruenzi, S. (2007). Sex matters: Gender differences in a professional

setting (No. 06-01). CFR Working Paper.

Stein, J. C. (2002). Information production and capital allocation: Decentralized versus

hierarchical firms. The journal of finance, 57(5), 1891-1921.

Storberg-Walker, J., & Madsen, S. R. (2017). The women and leadership theory think

tank report 2015. Women & Leadership Think Tank Report 2015, 1.

Taylor, R.N., (1975). Age and experience as determinants of managerial information

processing and decision making performance. Acad. Manag. J. 18, 74–81

Tihanyi, L., Ellstrand, A. E., Daily, C. M., & Dalton, D. R. (2000). Composition of the

top management team and firm international diversification. Journal of

management, 26(6), 1157-1177.

Üsdiken, B. (1992). The impact of environmental change on the characteristics of top

management teams. British Journal of Management, 3(4), 207-219.

Watson, J., Newby, R., & Mahuka, A. (2009). Gender and the SME “finance

gap”. International Journal of Gender and Entrepreneurship, 1(1), 42-56.

Wolfers, J. (2006). Diagnosing discrimination: Stock returns and CEO gender. Journal

of the European Economic Association, 4(2-3), 531-541.

Wurgler, J. (2000). Financial markets and the allocation of capital. Journal of financial

economics, 58(1-2), 187-214.20

Yu, S., Lord, R., Peni, E., & Vähämaa, S. (2010). Female executives and earnings

management. Managerial Finance.

Zenger, T. R., & Lawrence, B. S. (1989). Organizational demography: The differential

effects of age and tenure distributions on technical communication. Academy

of Management journal, 32(2), 353-376.

Downloads

Published

2023-07-13

How to Cite

Tabassum, S. T., Ghafoor, Z. G., & Shareef, A. S. (2023). INFLUENCE OF CEO GENDER ON CORPORATE RISK-TAKING AND CAPITAL ALLOCATION EFFICIENCY. NUST Business Review, 5(1). https://doi.org/10.37435/NBR23042001