Cross-Country Gender Bias and Corporate Cash Holdings

Abstract

We examine the cross-country relationship between gender bias, as portrayed in a country’s folklore, and firms’ corporate cash holdings. Controlling for firm characteristics, country-specific macroeconomic attributes, governance factors, and cultural differences, we document that firms in countries with a more pronounced Male Bias tend to hold significantly less cash. We provide evidence that these differences can be attributed to countries with larger Male Bias exhibiting less patience, consistent with the precautionary savings motive to hold cash.

Keywords: cash holdings, male bias, cross-country.

JEL Classification: F30, G30, G40.