 The impact of CFO gender on corporate overinvestmentYin Liu, Pamela Neely and Khondkar Karim Advances in accounting, 2022, vol. 57, issue C Abstract: Prior research indicates that males and females tend to respond differently in various decision settings. Two such behavioral characteristics, risk-taking attitudes and ethical leadership, are tied to corporate financial and investment decision-making. In this study, we examine the association between CFO gender and corporate investment efficiency, specifically, the extent of firm-level overinvestment. We find that the presence of a female CFO is significantly associated with a decreased level of corporate overinvestment. Robustness checks using alternative investment measures and controlling for CFO-, CEO-, and board-level factors provide consistent support to this main finding. Consistent with prior studies, we show that female executives are more cautious and risk-averse than their male counterparts when making various corporate decisions, and thus, may be more likely to act in shareholders' best interests. Our findings highlight that gender plays a role in corporate financial and investment decision-making. Keywords: CFO gender; Overinvestment; Investment efficiency; Risk preferences; Ethical leadership (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:57:y:2022:i:c:s0882611022000189 DOI: 10.1016/j.adiac.2022.100599 Access Statistics for this article Advances in accounting is currently edited by Dennis Caplan More articles in Advances in accounting from Elsevier |
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