The Research On Female Executive, Over-investment And Enterprise Value

With the progress of era and the rising of women’s social status, female executives are strongly rising, and creating miracles in the field of business. The proportion of female executives in executive team is increasing and the role of them is significance. At the same time, enterprises are more and more concerned about the construction of executive team diversity, and the sex ratio problem is an important research perspective of executive team diversity construction. The foreign researchers had started extensive research on the characteristics of female executives including the relationship among female executives, company’s financial behavior and enterprise value. But in our country, studies of female executives are numbered.In order to explore the relationship among our country female executives, corporate financial behavior and corporate value, based on the data from 2005 to 2012, using the method of multiple regression, this paper investigates the relation among female executives, over-investment and enterprise value. The result shows that female executives can bring positive effect to enterprise value. Also, female executives can block company over-investment behavior and decrease enterprise risk. But, there is no obvious relation between female executives and enterprise risk. At the same time, we also prove that over-investment is the intervening variable of female executives work on the enterprise value, that is female executives improve enterprise value through decreasing over-investment behaviors. The results confirm the women had the characteristics of risk aversion, consistent with the existing scholar’s research conclusion.Implement the research on the characters caused by executive gender differences impact on excessive investment and enterprise value, is advantageous to the rich corporate governance research and broaden the research field of the construction of the executive team diversity, which providing empirical evidence of the role of female executives in the company’s operating results.