Chairman Raising Daughters And The Efficiency Of Corporate Capital Allocation

Capital,as an important scarce resource for enterprises to expand reproduction,is an important source of power for sustainable development of enterprises.The importance of capital for enterprise sustainable development is not only reflected in the accumulation of quantity,but also in the improvement of its allocation efficiency.In the new normal of China’s economy,enterprises need to adjust their growth models that rely solely on the number of capital factors.Optimizing capital allocation to improve the efficiency of corporate capital allocation is the right way.For a long time,the problem of low capital allocation efficiency has been common in the listed companies,which has led scholars to explore the influencing factors from various angles.With the development of “Upper Echelon Theory”,psychology and behavioral finance,many scholars have paid attention to the influence of objective and psychological managerial characteristics on the efficiency of corporate capital allocation.But so far,there is almost no research on how to influence the behavior of capital allocation or the efficiency of capital allocation from the perspective of the gender of managers’ offsprings.Based on this,this paper takes A-share listed companies from 2003 to 2017 as a sample.By examining the gender structure of the chairman’s offsprings,this paper innovatively uses “raising daughter” as the entry point to study how the chairman’s raising daughters affects the capital allocation efficiency of the company.At the same time,this article combines the reality of different marketization levels in various parts of China to explore the moderating effect of marketization on the above relationship.The results of this study indicate that compared with the chairman who raises sons,the chairman who raises daughters has a higher capital allocation efficiency in the company,that is,the “daughter effect” exists in the capital allocation efficiency of the company.Besides,the “daughter effect” is stronger in the regions with lower-levelmarketization.This paper also analyzes the heterogeneity of the chairman,and finds that the “daughter effect” of younger,highly educated and non-CEO chairman is much more significant.This paper further explores the mechanism of action and finds that raising daughters by the chairman can promote “supervisory and governance effect” in the enterprise.Specifically,the chairman who raises daughters has been influenced by“female flexible management style”.Therefore,his work attitude,ethics,decisionmaking methods and the attitude to risk have also been influenced,which can improve the efficiency of the board of directors and corporate governance level.For example,the chairman who raises daughters will devote more time and energy to the decisionmaking and supervision of capital allocation project,showing a more diligent and responsible work attitude.The chairman who raises daughters will also have a more stable management style,so the risks of the project will be fully considered.In this way,the capital allocation decisions will be more scientific and reasonable,and the inefficient capital allocation behaviors of the enterprise will be effectively avoided.In the context of Chinese unique “family culture” and gender culture,this paper studies the relationship between the chairman’s parenting and the efficiency of corporate capital allocation from the perspective of “raising daughters”,which undoubtedly fills a gap in the literature on the correlation between the gender of managers’ offsprings and the efficiency of corporate capital allocation.The results of this study also provide suggestions for improving the corporate governance structure,and will also help the investors and the public to understand the motivation and consequences of capital allocation behavior of listed companies from a deeper perspective.