Women are from Venus, Men are from Mars: But Do the Financial Markets Know It?

Amelie Charles and Etienne Redor ()
Additional contact information
Etienne Redor: Audencia Recherche - Audencia Business School

Post-Print from HAL

Abstract: Although existing research has documented in very wide and detailed terms the impact of the presence of female directors on the financial performance of firms, very little is known about the link between board composition and corporate risk-taking. Drawing from the academic literature demonstrating that women are more risk averse than men, herein, we analyze the relationship between gender diversity and firm risk. In particular, we study whether the appointment of female directors affects firm risk level. We use three different measures of risk (total risk, systematic risk, and unsystematic risk) and compare firm risk level before the addition of new members (both male and female) to the corporate board to the risk level after such additions. Our results indicate that there is no significant gender difference in the risk level before and after the appointment of a director, when the whole sample is considered. However, some differences appear when the analysis is conducted by industry. Similarly, we show that the appointment of a female director has a greater impact on firm risk in female-director-friendly firm.

Date: 2014-03-31
New Economics Papers: this item is included in nep-ent and nep-rmg
Note: View the original document on HAL open archive server: https://audencia.hal.science/hal-00977037
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Economics Bulletin, 2014, 34 (1), pp.589-604

Downloads: (external link)
https://audencia.hal.science/hal-00977037/document (application/pdf)

Related works:
Journal Article: Women are from Venus, Men are from Mars: But Do the Financial Markets Know It? (2014)
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:hal:journl:hal-00977037

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().