Research On The Female Executives Of China's Listed Companies And The Cost Of Debt Financing

With the development of the society,women are increasingly involved into the workplace and the proportion of women in the executive team also has a certain degree of improvement,but the "glass ceiling" phenomenon still exists.Psychological studies have shown that women tend to be more risk averse and less assertive than men.Based on this psychological trait,the role of female executives in corporate financial decision-making and corporate value has received extensive attention.At present,China's bond market has become the world's third.Huge debt financing brought the repayment of interest up to 8.66 billion,and also brought the huge credit risk,so the reduction of debt financing cost is of great significance to the management of enterprises.This paper studies the impact of female executives on debt financing costs,which is of great significance to enrich the female executives and financing related documents.At the same time,it also has important significance for the company to optimize the management team and standardize the financing decisions.This paper chooses the Shanghai and Shenzhen A-share listed companies from2014 to 2016 as the research object and the contents are as follows.Firstly,deduce the hypothesis according to upper echelon theory and related literature.Secondly,do descriptive statistics,correlation analysis,kernel density estimation,mean T test and regression analysis of empirical research samples using STATA10.0 statistical software to verify the relationship between gender and the debt financing cost,as well as the relationship between gender,overconfidence and financing cost of debt.Finally,research the mediating effect of debt financing costs between gender and the value of the company using the check-in turn method in order to verify whether the pursuit of female executives to reduce the cost of debt financing is at the expense of the company value.The conclusions of this paper are as follows.First,for the female executives are less overconfident than man,introducing female executives at the top of the company governance structure has a positive role to optimize the management of debtfinancing decision,especially in reducing the cost of debt financing plays.Second,single or non critical female executives can not produce effective influence on the company key decisions.Third,women's participation in corporate governance can effectively improve the overall value of the company,and the higher cost of debt financing is not conducive to the promotion of the company value.At last,the role of female executives in reducing the cost of debt financing is not at the expense the company value.On the contrary they promote the value of the company by reducing the cost of debt financing.The mediating effect of the debt financing cost on the relationship between the gender and the corporate value is 4.5738%,therefore there are other intermediary factors in the promotion effect of executives' gender on corporate value.