Does gender promote ethical and risk-averse behavior among CEOs? An illustration through related-party transactions

Muhammad Umar Farooq, Kun Su, Sabri Boubaker and Ammar Ali Gull

Finance Research Letters, 2022, vol. 47, issue PB

Abstract: This study provides direct evidence of whether female CEOs are more ethical or risk-averse by investigating the relationship between female CEOs and related-party transactions (hereafter RPTs). Using a sample of Chinese listed firms over 2005−2018, we find evidence that female CEO firms engage in fewer RPTs, suggesting that female CEOs are not only risk-averse but also more ethical. Moreover, we show that firm performance increases when these firms allow RPTs, suggesting that female CEOs are less likely to allow opportunistic RPTs. Finally, we find that negative association between female CEOs and RPTs is more pronounced in firms more likely to use RPTs (i.e., state-owned enterprises).

Keywords: Female CEOs; RPTs; Ethical; Risk-averse (search for similar items in EconPapers)
JEL-codes: G3 J1 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Working Paper: Does Gender Promote Ethical and Risk-Averse Behavior among CEOs? An Illustration through Related-Party Transactions (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000538

DOI: 10.1016/j.frl.2022.102730

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