Female Chairman,Risk Preference And Agency Cost

Under the modern enterprise system,ownership and control are separated.The conflicts of interest will inevitably occur between the owner of the enterprise and the agent of the enterprise,which come to result in agency problems.Serious agency problems will bring huge agency costs to enterprises,and become one of the hinder to the development of enterprises.Therefore,how to solve the agency problem has been the main problem of corporate governance structure.In recent years,with the continuous improvement of social thoughts and economy,more and more women have stepped into the commercial circles,and the outstanding among them have become the member of the senior management team,who can play an important role on the company's governance.However,through the analysis of domestic and foreign literatures,few documents directly study the impact of female executives on agency costs.In order to explore the relationship between female executives and agency costs in China,this paper selects the highest leader in the company,the female chairman,as the object,to analyze how they influence the agency costs.In the further study,this paper also explores whether the property rights,product market competition and internal control quality will make a different to the relationship between the female chairman and agency costs.Based on the above analysis,this paper will empirically test the influence of the female chairman on the agency cost.The research findings are as follows:(1)female chairman is conducive to reducing the agency cost of the enterprise;(2)compared with male chairmen,female chairmen have lower risk preference;(3)the risk preference of the female chairman plays a mediating role in the influence of the female chairman on the agency cost;(4)in Chinese listed non-SOEs,those with stronger product market competition and high quality internal control,the role of female chairman in reducing agency costs is more obvious.This paper expands the research on agency cost and finds that manager's gender is an important variable affecting agency cost,and perfects the research framework of agency cost.At the same time,this paper also enriches the research on the financial behavior and corporate governance of female executives.