Managing Bank Liquidity Hoarding during Uncertain Times: The Role of Board Gender Diversity

Denis Davydov, Tatiana Garanina and Laurent Weill
Additional contact information
Denis Davydov: Hanken School of Economics
Tatiana Garanina: University of Vaasa
Authors registered in the RePEc Author Service: Tatiana King

Working Papers of LaRGE Research Center from Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg

Abstract: This paper examines the effect of executive board gender diversity on the relationship between economic policy uncertainty (EPU) and bank liquidity hoarding (LH). We focus on the Russian banking sector, which, relative to most of the world, has a high share of women on bank executive boards. Using the news-based EPU index developed by Baker, Bloom, and Davis (2016) and LH measures proposed by Berger, Guedhami, Kim, and Li (2022), we exploit a unique dataset from the Russian banking sector. While higher economic policy uncertainty tends to increase liquidity hoarding, we find this effect diminishes as gender diversity of the board increases. We attribute this finding to the moderating influence of gender diversity on stability and overreaction in decision-making. These results argue for policies to promote gender diversity of bank boards as a means of limiting detrimental effects of economic policy uncertainty.

Keywords: Liquidity hoarding; Bank boards; Gender diversity; Economic policy uncertainty. (search for similar items in EconPapers)
JEL-codes: G18 G21 G34 P26 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-cis and nep-tra
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http://ifs.u-strasbg.fr/large/publications/2022/2022-08.pdf (application/pdf)

Related works:
Journal Article: Managing bank liquidity hoarding during uncertain times: The role of board gender diversity (2024)
Working Paper: Managing bank liquidity hoarding during uncertain times: The role of board gender diversity (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:lar:wpaper:2022-08

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