The Empirical Study On The Relationship Between Female Executives And Trade Credit Financing

With the increasing value of female practitioners,enterprises have introduced female staff into their senior management team in order to improve the business management.Previous studies have shown that female executives can promote corporate performance,improve corporate social responsibility performance and charity donation level,and pursue stability and avoid risks in corporate strategy.How to take the maximum advantages of female executives is of great importance for enterprises.Because of the current economic environment and the strict condition of bank credit,“financing difficulty” has become a serious problem for most enterprises,and those enterprises have turned to trade credit for financing.The level of trade credit financing is affected by many factors,but there are few studies to link it with female executives in existing literature.Therefore,based on the perspective of women,this paper empirically tests the relationship between the proportion of female executives and the level of corporate trade credit financing.Firstly,this paper summarizes and sorts out the existing literature on female executives and trade credit.On this basis,this paper lists the relevant theories and proposes the hypotheses,then defines the variables and measurement methods and builds the regression model.Using Excel and Stata to sift and sort out the data needed,and carry out correlation analysis,descriptive statistics and multiple regression analysis to verify the relationship between female executives and the level of trade credit financing.Besides,conduct the robustness test and discuss the endogenous issues.Finally,this paper puts forward some conclusions and suggestions.Through empirical research,this paper finds that: The higher the proportion of female executives is,the lower the level of trade credit financing is.There is a significant negative correlation between them.A series of robustness tests don’t change the conclusion.Further analysis finds that,female executives have a significant inhibitory effect on the company’s accounts payable(accounts payable and notes payable),while it’s not same with the company’s deposit received.Compared with the state-owned enterprises,the non-state-owned enterprises’ female executives have more significant inhibition on the level of trade credit financing.In addition,the regression results of sub samples show that: in the eastern part of China,the proportion of female executives has a significant negative correlation with the level of trade credit financing,while in the central and western regions,the relationship between the two is not significant.