Are Women CEOs Valuable in Terms of Bank Loan Costs? Evidence from China

Given that women CEOs are usually more risk averse, engage less in opportunistic behavior, and provide higher quality earnings than men CEOs, we argue that firms with women CEOs are likely to face lower operational and information risk and thus enjoy cheaper external funds. Using a large sample of C...

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Bibliographic Details
Published in:	Journal of business ethics 2018-12, Vol.153 (2), p.337-355
Main Authors:	Luo, Jin-hui, Huang, Zeyue, Li, Xue, Lin, Xiaojing
Format:	Article
Language:	eng
Subjects:	Avoidance Bank loans Banking Business and Management Business Ethics Chairpersons Chief executive officers Chief executives Companies Costs Earnings Economic crisis Education Emerging markets Ethics Executives Executives (Business) Female employees Gender Income Laissez faire Loans Management Opportunistic behaviour Original Paper Philosophy Profits Public enterprise Quality of Life Research Risk Risk aversion Social responsibility Women
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Summary:	Given that women CEOs are usually more risk averse, engage less in opportunistic behavior, and provide higher quality earnings than men CEOs, we argue that firms with women CEOs are likely to face lower operational and information risk and thus enjoy cheaper external funds. Using a large sample of Chinese -share listed firms operating from 2006 to 2012, we find consistent evidence that Chinese banks tend to impose lower loan costs on firms with women CEOs compared to firms with men CEOs. This effect is more pronounced (1) for non-stateowned enterprises than for state-owned enterprises, (2) for firms without political connections than for firms with political connections, and (3) during non-crisis periods. We do not find any significant effects for firms with women chairpersons, CFOs, or directors.
ISSN:	0167-4544 1573-0697