Female Leadership and Bank Performance in Latin America

54 Pages Posted: 18 May 2020

See all articles by Emilia Vähämaa

Emilia Vähämaa

Hanken School of Economics

Laura Baselga-Pascual

University of Deusto - Deusto Business School

Date Written: February 27, 2020

Abstract

This paper examines the relationship between gender diversity in corporate boards and executive positions and bank risk and performance in Latin America. Our sample covers 91 individual banks during 2000–2017. Our results suggest that banks with a higher proportion of female executives tend to have lower Z-scores than male-led banks. However, female-led banks are more profitable. Our results provide new information related to the debate on the relationship between gender-based behavioural differences and financial decisions by showing that Latin American banks with a higher proportion of female executives are riskier and more profitable than male-led banks. Given the impact of bank performance on the international economy, the global interconnection of financial institutions, and the lack of legal protection in this region, it is of interest for regulators and policy makers to analyse possible sources of better performance and governance in Latin American banks.

Keywords: Corporate governance, female leadership, financial institutions, Latin America

JEL Classification: G01, G21, G23, G30, M14

Suggested Citation

Vähämaa, Emilia and Baselga-Pascual, Laura, Female Leadership and Bank Performance in Latin America (February 27, 2020). Available at SSRN: https://ssrn.com/abstract=3581714 or http://dx.doi.org/10.2139/ssrn.3581714

Emilia Vähämaa (Contact Author)

Hanken School of Economics ( email )

PB 287
Helsinki, Vaasa 65101
Finland

Laura Baselga-Pascual

University of Deusto - Deusto Business School ( email )

Camino de Mundaiz, 50
San Sebastian, 20012
Spain

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