The Gender Structure Of Board Directors And Corporate Performance Fluctuation

Enterprise Performance fluctuation has been a hot issue academia, measure an important dimension of corporate performance is the company’s performance fluctuation, so the research of enterprise performance fluctuation has an very important theoretical and practical value. Fluctuation of corporate performance reflects not only the size of the risk faced by the enterprises, but also reflects the overall level of corporate governance. Finally, the fluctuation of corporate performance can also reflect the stability of the enterprise profitability.Scholars to be answered from the fluctuation factor of enterprise performance aspects, such as industry factors, scale factor, ownership concentration factors, factors of independent directors, the board features factors, decision factors of company executives, information disclosure factors. However, existing studies ignore women of the board to impact the fluctuation corporate performance. Female directors as the company’s management can make decisions for future projects of the company. However, the evaluation of their ability to female managers lower than men, the overconfidence will be much smaller than the male managers. Therefore, with respect to the male managers, female managers have less tendency of risk appetite, tend to be more risk-averse. Women managers in the face of the investment environment of uncertainty would not be as optimistic as men managers, female managers based on their own ability to practical, to invest profitable projects in insurance when making investment decisions, so it is good protection of enterprise value, maintain a stable business performance, namely the performance of small fluctuations in business, it is a good and stable development of the company.Enterprise life cycle is an important factor when considering the volatility of corporate performance issues can not be ignored. When the corporate life cycle in the growth stage, the male board members affected by the stage for rapid development, the results are more eager to grow, overconfidence behavior when its decision is likely to increase business investment behavior of the level of risk, causing excessive high performance volatility. Board members will play a role in female stabilizer in team decisions, acts to suppress overconfidence male members of the Board of Directors, for the more cautious decision-risk projects, and thus more likely to reduce performance volatility.Articles based on2002-2012between Shanghai and Shenzhen listed companies’ data, an empirical study of the impact of female directors in the fluctuation of its performance, the study found:(1)The proportion of women corporate board members have a negative impact on performance volatility.(2) The proportion of women corporate board members have negative impact on performance volatility though risk-taking.(3) Business life cycle in the growth stage, the proportion of women board members on performance volatility negative impact stronger.Throughout the full text of the research contributions of this paper are as follows:First, this paper takes the empirical analysis of correlation between the proportion of female directors of listed companies in China and its performance is analyzed volatility scientific system, and therefore more practical. In the domestic field of management, the paper on innovative topics, innovation is that the proportion of women directors in this article to create a precedent for the study of their performance volatility for Research and structural characteristics of the board of management of women at the same time providing new perspective, but also for the study of Chinese female directors and female executives has brought inspiration and help.Furthermore, this paper studies the correlation between the proportion of women at the Directors volatility of its performance, not only from the perspective of gender characteristics, but also by the structural features of the board, such as:the number of holdings of directors, board size, company size, etc., as control variables conduct comprehensive analysis, not only enrich the statistical analysis, and also ruled out only to consider the issue from the perspective of gender factor limitations of this feature. Based on the results of the Board members after the relationship between the proportion of female volatility between corporate performance and innovative use of the risk-taking of this variable as a mediating variable, through empirical verification of the number of female directors to play their role has a great influence more powerful illustrates the relationship between the proportion of female directors and corporate performance volatility. The methods and angle is relatively new.Finally, the analysis in this paper introduces a long-term evaluation methods-Market Performance Indicators (Tobin ’Q) and accounting indicators ROE (ROE), a comprehensive study from both the proportion of female directors of listed companies in China and its business performance volatility correlation. To overcome the short-term indicators earnings per share, book value limitations.According to the enterprise at different life cycle to discuss the performance of the Board of Directors of the women for the impact of volatility, major research enterprise in the formative stage, the female members of the Board of Directors will play a stabilizing agent in team decision-making role in this paper innovative, inhibiting the board overconfidence behavior of male members of the decision-making more cautious risk projects, and thus more likely to reduce performance volatility.