Gender and corporate finance: Are male executives overconfident relative to female executives?

Jiekun Huang and Darren J. Kisgen

Journal of Financial Economics, 2013, vol. 108, issue 3, 822-839

Abstract: We examine corporate financial and investment decisions made by female executives compared with male executives. Male executives undertake more acquisitions and issue debt more often than female executives. Further, acquisitions made by firms with male executives have announcement returns approximately 2% lower than those made by female executive firms, and debt issues also have lower announcement returns for firms with male executives. Female executives place wider bounds on earnings estimates and are more likely to exercise stock options early. This evidence suggests men exhibit relative overconfidence in significant corporate decision making compared with women.

Keywords: Corporate policies; Gender; Overconfidence; Mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: G30 G34 J16 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (488)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:108:y:2013:i:3:p:822-839

DOI: 10.1016/j.jfineco.2012.12.005

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