Research On Enterprise Debt Risk Management With Female Senior Executives’ Participation

With the demographic transition,women’s social status and professional skills have been improving,contributing greatly to economic development.Moreover,as more women participate in the operation and management of enterprises,the unique attributes of female executives can monitor the management more closely,enhance the effectiveness of supervision of the enterprise,and at the same time,provide different perspectives for the formulation of corporate decision-making,reduce the decision-making errors caused by individual subjective preferences,and at the same time,bring the enterprise a more robust capital structure and higher quality of the external audit,so that it can be seen that the participation of female executives leads to a more This shows that the participation of female executives leads to a more balanced and healthy corporate management structure.In the face of the changing economic situation,how to prevent debt risk,optimize corporate debt risk management by giving full play to the advantages of female executives,and cope with the risk fluctuations in the process of economic operation are the focuses of attention of both academia and practice.Based on this,this paper focuses on the effect and mechanism of female executives’ participation on enterprise debt risk management,which provides a new thinking paradigm for enterprise management research.For corporate debt risk management,capital structure adjustment implies that firms regulate leverage levels to reduce potential corporate risks;cash holdings can increase corporate liquidity to prevent risky shocks to corporate operations;and debt default risk is a reasonable assessment of corporate operations to directly avoid debt default.Based on capital structure optimization,liquidity management and stock option pricing of listed companies,this paper extracts the corporate capital structure adjustment,cash holding level and debt default risk,respectively,and examines the effect effect and mechanism of female executive participation on corporate debt risk management,specifically,this paper investigates the following issues:(1)the impact of female executive involvement on the adjustment of corporate capital structure,and the difference of the impact under different adjustment directions,the mechanism of this impact,and what is the path of dynamic adjustment of capital structure under female executive involvement;(2)the impact of female executive involvement on corporate cash holdings,the conditions under which this impact can work,and the effect of female executives on the level of cash holdings based on the capital market and product market perspectives;(3)the impact of female executive involvement on corporate default risk,principal-agent costs and operational risk in which the mechanism of action,corporate governance environment and external environment uncertainty lead to the variability of the impact.To address these issues,this paper uses the 2003-2020 Shanghai and Shenzhen A-share listed companies as the research sample to carry out an empirical analysis of the above three aspects.The main research contents and basic findings of this paper are as follows.The impact of female executive involvement on corporate capital structure adjustment.This paper conducts an in-depth study from theoretical to empirical evidence on the impact of female executive involvement on the speed of corporate capital structure adjustment.On the basis of distinguishing the differences in the effects under different adjustment directions,the mechanisms of the role of female executives in promoting capital restructuring are explored from two perspectives,namely,the level of corporate overconfidence and corporate reputation,respectively.Further,this paper explores the specific paths of dynamic capital structure adjustment by female executives’ participation from the perspective of equity and liabilities.The results show that female executives’ participation has a significant effect on the speed of capital restructuring,and this effect is more pronounced in the process of downward capital restructuring,and this finding still holds after a series of robustness tests.Female executives are less overconfident than male executives,and by suppressing management’s overconfidence level,they can effectively improve decision bias and enhance the speed of corporate recapitalization.Female executives also pay more attention to the operation of the company’s reputation and tend to reduce the transparency of the company’s information,which brings lower adjustment costs for the company and thus effectively improves the speed of the company’s recapitalization.In addition,female executives are more likely to recapitalize their companies downward by increasing equity financing.The effect of female executive involvement on corporate cash holdings.This paper provides an in-depth theoretical and empirical study of the impact of female executive involvement on firms’ cash holdings.Further,this chapter examines the differences in the impact of female executives on cash holdings in terms of firm performance,industry growth and economic cycles.Finally,this chapter examines the value and competitive effects of female executives’ participation in cash holdings from both the capital and product markets.The results of the study show that female executive involvement has a significant contribution to the level of corporate cash holdings,and this finding still holds after a series of robustness tests.This effect is more pronounced in periods of declining firm performance,industry recession and economic contraction.Moreover,female executives’ participation in the process of increasing corporate cash holdings has a value effect of cash holdings,but does not show a significant competitive effect of cash holdings.The effect of female executive involvement on corporate debt default risk.This paper theoretically examines the impact of female executive involvement on corporate debt default risk.Further,this chapter explores the mechanisms by which female executives inhibit corporate default risk from the perspective of principalagent costs and business risks.In addition,this chapter examines the differences in the effects of female executives in mitigating corporate default risk from the perspectives of corporate governance environment and external environmental uncertainty.The findings show that female executive involvement has a significant inhibitory effect on corporate default risk,and this finding still holds after a series of robustness tests.Female executives reduce firms’ default risk by reducing their principal-agent costs and operational risk.In addition,the positive effect of female executives in default risk is more pronounced in firms with poor corporate governance environment and high uncertainty in the external environment.Based on the existing studies,the innovations of this paper are mainly reflected in the following: first,with the continuous rise of female power,women become an important component in the management structure of enterprises,but there is still little literature to study the impact of gender diversity on enterprise risk management from the perspective of management as the main body of decision making,this paper examines for the first time the impact of female executives’ participation on the dynamic adjustment behavior of corporate capital structure,opening This paper is the first to examine the impact of female executive participation on the dynamic adjustment behavior of corporate capital structure,opening the black box of the role of female executives in promoting capital structure adjustment,breaking through the invisible glass ceiling at the theoretical level,and providing insights on management allocation for firms to achieve value growth.Second,the factors affecting corporate cash holdings are examined in depth from the perspective of female executives’ participation.The level of cash holdings,as one of the important financial decisions of a company,will be influenced by the participation of female executives in the management team.This paper takes women’s participation in corporate governance under the new economic development as a direction of corporate management innovation and explores its impact on corporate cash holdings,which enriches the research framework of corporate cash holdings.Third,this paper examines the impact of female executive participation on corporate default risk,enriching the research framework of the economic consequences of female executive participation.In recent years,the unique gender characteristics of women can play a positive role in suppressing corporate default risk as their status and achievements in modern economic development have gradually increased.This paper identifies the positive effects of female executive involvement in the Chinese institutional context,explores the mechanisms that effectively inhibit corporate default risk from the perspective of the intrinsic trait differences of women compared to men,and provides theoretical evidence for the social and economic value of women from the micro perspective of real economic development.