Female CEOs And Corporate Financial Investment Behavior

In recent years,female managers and corporate financial investment behaviors have become a hot topic in capital markets and academic research.On the one hand,more and more listed companies have invested their own resources in financial assets,and the phenomenon of “de-realization” of the economy has been paid attention to by the regulatory authorities and the society.On the other hand,female managers have become a force that cannot be underestimated in the workplace.The research on the role of female managers has become one of the important directions in the field of corporate finance and accounting research.Therefore,it is of theoretical and practical significance to study the relationship between female managers and corporate financial investment behavior.Existing research has found that the personal characteristics of management have an impact on the financial investment behavior of enterprises,but as one of the important individual characteristics,the relationship between gender and its relationship has not been studied.As one of the female managers who have an important influence on the decision-making behavior of corporate financial investment,does the risk preference of female CEOs affect the financial investment behavior of the enterprise? Based on this,the theoretical analysis and empirical tests are carried out based on the theory of Upper Echelons and gender risk preference theory,and the data of A-share listed companies in China's Shanghai and Shenzhen stock markets from 2007 to 2016.First,study the impact of female CEOs on corporate financial investment behavior.Secondly,it is tested whether there is a difference between the nature of property rights and the personal characteristics of CEOs.Thirdly,in order to analyze the relationship between the two,the paper analyzes the impact of female CEOs on different types of financial assets(e.g.,transactional financial assets,investment real estate,long-term equity investment,entrusted wealth management and trust products);tests the impact of female CEOs on the economic consequences of corporate financial investment behavior,namely the profit of non-productive business operations such as financial assets;analyzes the impact of different gender CEOs working with CFOs or the chairman of the board on the financial investment behavior of enterprises.Finally,in order to make the research conclusions of this paper more stable,this paper also tests the robustness from three aspects: changing the measurement method of enterprise financialization,changing the research sample,and using PSM pairing,Heckman twostage way,DID to alleviate endogeneity problems.The research in this paper found that: First,female CEOs significantly inhibited corporate financial investment behavior.Second,there is a significant difference in the nature of property rights and the individual characteristics of CEOs.That is,the negative relationship between the two is more significant in the group of state-owned enterprises,CEOs with less power,higher education,and without financial background.Further research finds that female CEOs have heterogeneous differences on different types of financial assets,female CEOs investing in financial assets are not prone to losses,but it is also difficult to obtain more benefits;female CEOs also reduce the risk of corporate financial gains and losses;when they are “working” with male CFOs or chairman,female CEOs have a stronger inhibitory effect on corporate financial investment behavior.The research in this paper expands the research on the influencing factors of corporate financialization,and provides further empirical evidence for the hypothesis that gender differences have a significant impact on corporate decisionmaking in higher-order theory,enriching the research of female managers,and may also be a governance enterprise.Providing certain policy recommendations for overfinancialization and easing of the economy.At the same time,it may also provide certain policy recommendations for the governance of over-finanization of enterprises and the alleviation of economy transfer from the real economy to the fictitious economy.