Abstract

http://ssrn.com/abstract=2021136
 
 

Citations (3)



 


 



CEO Gender, Corporate Risk-Taking, and the Efficiency of Capital Allocation


Mara Faccio


Purdue University - Krannert School of Management; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

Maria-Teresa Marchica


University of Manchester - Manchester Business School

Roberto Mura


University of Manchester - Manchester Business School

November 21, 2012


Abstract:     
We show that CEO gender helps explain corporate decision making. In particular, we document that firms run by female CEOs have lower leverage, less volatile earnings, and a higher chance of survival than firms run by male CEOs. The results are robust to various tests for endogeneity, including firm fixed effects and change specifications, propensity score matching, a switching regression analysis with endogenous switching, and a treatment effects model. We further document that this risk-avoidance behavior appears to lead to distortions in the capital allocation process. These results have important macroeconomic implications for long-term economic growth.

Number of Pages in PDF File: 49

Keywords: gender, risk-taking, capital allocation

JEL Classification: G31, G32, J16

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Date posted: March 14, 2012 ; Last revised: January 20, 2013

Suggested Citation

Faccio, Mara and Marchica, Maria-Teresa and Mura, Roberto, CEO Gender, Corporate Risk-Taking, and the Efficiency of Capital Allocation (November 21, 2012). Available at SSRN: http://ssrn.com/abstract=2021136 or http://dx.doi.org/10.2139/ssrn.2021136

Contact Information

Mara Faccio (Contact Author)
Purdue University - Krannert School of Management ( email )
1310 Krannert Building
West Lafayette, IN 47907-1310
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
Maria-Teresa Marchica
University of Manchester - Manchester Business School ( email )
Crawford House
Oxford Road
Manchester M13 9PL
United Kingdom
+44(0)1612750121 (Phone)
+44(0)1612754023 (Fax)
HOME PAGE: http://www.personal.mbs.ac.uk/mmarchica/index.htm
Roberto Mura
University of Manchester - Manchester Business School ( email )
Crawford House
Oxford Road
Manchester, Lancashire M13 9PL
United Kingdom
+44 (0) 161 275 4023 (Fax)
HOME PAGE: http://www.robertomura.com
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