Board gender diversity, competitive pressure and investment efficiency in Chinese private firms

Sultan Sikandar Mirza (), Muhammad Ansar Majeed () and Tanveer Ahsan ()
Additional contact information
Sultan Sikandar Mirza: University of Waikato
Muhammad Ansar Majeed: Zhejiang Gongshang University
Tanveer Ahsan: Rennes School of Business

Eurasian Business Review, 2020, vol. 10, issue 3, No 4, 417-440

Abstract: Abstract This study investigates the impact of female directors (FDs) on investment efficiency in a competitive environment. Considering Chinese market, where corporate governance practices are weaker than other developed countries and empirical evidence regarding the role of female directors in shaping investment efficiency is absent, this study fills this gap by studying the role of the female directors in investment efficiency in a competitive environment. The results show that FDs improve the investment efficiency in the firms as they play a monitoring role, discipline the management, reduce agency problem, and improve efficient allocation of resources. The results also exhibit that FDs significantly curb the overinvestment problem. However, FDs do not play a significant role in reducing underinvestment problem. The study facilitates to understand the factors that help in efficient allocation of resources in an economy. This study can be helpful for the policymakers while devising corporate policies to promote and encourage gender diversity in higher management.

Keywords: Competition; Female board of directors; Investment efficiency; Overinvestment; Underinvestment (search for similar items in EconPapers)
JEL-codes: G3 G31 G34 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://link.springer.com/10.1007/s40821-019-00138-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurasi:v:10:y:2020:i:3:d:10.1007_s40821-019-00138-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

DOI: 10.1007/s40821-019-00138-5

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().