Inherent Mechanism Of The Effect Of Female Directors On Corporate Performance

As the continuous increasing female employment rate and improvement of access to educatio,a growing number of women take important position in the corporate.Many of them become directors to participate in corporate governance and have achieved remarkable results.At the same time,there are also some opponents claim that female directors just play a symbolic role in the board of directors they have not positive effect on corporate performance.This aroused controversy whether female directors could use their unique human capital and work experiences to participate in the board of directors governance,whether this finacial responsibility could improve enterprise performance and create values for shareholders? Whether those listed companies hire female to join the board of directors with political or interest motivation? The study develops and tests a set of hypotheses using the data of listed private-owned companies in China’s security exchanges to find how female directors influence the enterprise performance.This study make research based on the literature about the board of directors to participate in corporate governance.It use the data of GEM from year 2013 to 2014 to study the relationship between female directors and enterprise performance.Then this article use Hierarchical Regressions to examine this relationship in the context of human capital,as measured by the educational background,and social capital,as measured by the political connections,of the female directors,to investigate the origins and the contingencies of the linkage.Finally,it draw the conclution whether quota for female directers is reasonable.The empirical analysis show that only with the regulating effects female’s participation in the board of directors promote the enterprise appreciation.Which means enterprise not only nead to increase the number of female directors,but also guarantee the quality of female directors.Only in this way,the female could show a positive role in the board of directors.