The Impact of CFO Gender on Bank Loan Contracting
61 Pages Posted: 5 Nov 2011
There are 2 versions of this paper
The Impact of CFO Gender on Bank Loan Contracting
Date Written: October 4, 2011
Abstract
Motivated by recent studies that show female CFOs are more risk averse than male CFOs when making various corporate decisions, we examine whether banks take into consideration the gender of CFOs when pricing bank loans. We find that in our sample, firms under the control of female CFOs on average enjoy about 11% lower bank loan price than firms under the control of male CFOs. In addition, loans given to female CFO-led companies have longer maturities and are less likely to be required to provide collateral than loans given to male CFO led companies. Our results are robust to a series of robustness tests, such as a firm and year-fixed effect regression, a Heckman two-stage self selection model, a propensity score match method and a differences-in-differences approach. Overall, our results suggest that banks tend to recognize the role of female CFOs in providing more reliable accounting information ex ante and reducing default risk ex post, and grant firms with female CFOs lower loan price and more favorable contract terms.
Keywords: CFOs, gender, accounting information, bank loans
JEL Classification: M41, G21, J16
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Corporate Boards and Bank Loan Contracting
By Qiang Wu, Bill Francis, ...
-
Corporate Boards and Bank Loan Contracting
By Bill B. Francis, Iftekhar Hasan, ...
-
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
By Bill Francis, Iftekhar Hasan, ...
-
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
By Bill Francis, Iftekhar Hasan, ...
-
Enjoying the Quiet Life Under Deregulation? Evidence from Adjusted Lerner Indices for U.S. Banks
By Michael Koetter, James W. Kolari, ...
-
Handling Losses in Translog Profit Models
By Jaap W.b. Bos and Michael Koetter
-
A Note on the Assumed Distributions in Stochastic Frontier Models
-
The Impact of CFO Gender on Bank Loan Contracting
By Qiang Wu, Bill Francis, ...
-
Overinvestment and Underinvestment Problems: Determining Factors, Consequences and Solutions
By Alfio Cariola, Maurizio La Rocca, ...