Publication:
Women in power with power: the influence of meaningful board representation on default risk

Date

2023

Director

Publisher

Elsevier
Acceso abierto / Sarbide irekia
Artículo / Artikulua
Versión publicada / Argitaratu den bertsioa

Project identifier

AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/PID2019-104304GB-I00/ES/recolecta

Abstract

This paper examines the relationship between the presence of female board members and firms' corporate default risk. We find an inverted “U-shaped” relationship for a sample of 917 firms in 19 emerging markets for the period 2005–2019. We also show that, consistent with critical mass theory, boards need to have three or more female directors to significantly reduce default risk. Furthermore, having female directors with an independent role on the board in countries with less familial dominance, or having female directors with a leadership position, significantly reduces default risk. Finally, we find a positive effect of the interaction between a country's gender inequality and board gender diversity on default risk.

Description

Keywords

Black-Scholes-Merton model, Critical mass, Default risk, Female directors

Department

Gestión de Empresas / Enpresen Kudeaketa / Institute for Advanced Research in Business and Economics - INARBE

Faculty/School

Degree

Doctorate program

item.page.cita

Abínzano, I., Martínez, B., Poletti-Hughes, J. (2023) Women in power with power: the influence of meaningful board representation on default risk. International Review of Financial Analysis, 89, 1-15. https://doi.org/10.1016/j.irfa.2023.102771.

item.page.rights

Los documentos de Academica-e están protegidos por derechos de autor con todos los derechos reservados, a no ser que se indique lo contrario.