Research On Effects Of Female Directors To Listed Companies’ Investment Efficiency

Investment is the indispensable means to increase profit and promote the competition for companies,and it is also the starting point.In practice,because of asymmetry information and agency cost etc.investment behaviors of companies are represented as under-investment or over-investment.At present,companies are required to adjust the structure of the asset and broaden the investment channels gradually in our country;therefore it is especially important to analyze the influential factors of investment and improve investment.Studies have shown that Ownership Concentration,Free Cash Flow,Policy of Distributing Dividend and Financial Development Level etc.have some influence on investment.However,it is still need to verify the influence of the structure of board,especially about the sex structure of board.With increasing proportion of female directors,female directors become one of the significant forces in corporate governance.And,these problems have to be paid close attention.Some countries in Europe,some laws establish the number of Women Corporate Directors.It needs to be answered that how much the influence of Women Corporate Directors on investment.So,this paper researches the question of female directors to companies` investment efficiency by Resource Dependence Theory,Agency by Agreement Theory,Stakeholder Theory,Diversification Theory and Human Capital Theory.By empirical research,this paper researches the question of female directors to companies` investment efficiency from the gender of the chairman,the ratio of female directors,geographic location and cultural background and so on.This article researches the main-board companies in China as samples for the study from 2011 to 2015.Finally,results are shown below:(1)Female chairman could reduce the inefficient investment of listed companies,and in other words,they increase of investment efficiency and promote companies value.And high shareholding concentration is helpful of the effects.On the contrary,increasing the board size could reduce the inflation in corporate governance;it is harmful to the effects.So,increasing the right of female directors is benefit to the efficiency.(2)The high ratio of female directors will increase the inefficient investment of listed companies,and in other words,they reduce the investment efficiency and decline the companies` value.So,risk-aversion and conservative female is bad for the efficient investment of listed companies,if the ratio of female directors is high but they have no power.(3)The high female directors and female chairman could avoid the over-investment by reducing the total of investments.However,when companies are under-investment,the high female directors and female chairman could enhance the under-investment.(4)The effect is weakened by adding geographic location and cultural background of the south,so under-investment might be avoided;and the effect is controlled by adding geographic location and cultural background of the north,so over-investment might be restrained.Based on the above conclusions,the paper`s suggestions are as follows:(1)It unnecessary for our country to enact about the ratio of female directors like Switzerland and Norway;(2)The companies should grant female directors more power and important post if they have female directors;(3)The geographic location and cultural background should be considered when the companies elect the female directors;(4)Our country should improve the sexual equality laws,protect female work rights,and make female directors play an effective role in corporate governance.