Female Management,Risk Taking And Corporate Value

How to improve corporate performance is an important issue that has been paid attention to by corporate economics and corporate finance.With the in-depth study of high-level echelon theory,over-confidence theory,and principal-agent theory,a large number of research results show that different background characteristics of management will affect corporate performance.As the proportion of female executives in the company continues to increase,the effect of the background characteristics of executive such as gender on the company's risk-taking level and corporate performance is increasingly paid attention to by the society and academic circles.Based on the summarization of existing theories and literatures,this paper qualitatively analyzes the relationship among female executives,risk-taking levels and corporate performance,and analyzes the possibility of risk-taking level being the intermediary variable between female executives and corporate performance.Four research hypotheses and model frameworks of this paper are therefore proposed.These hypotheses are quantitatively tested by empirical analysis and the research conclusions and policy implications are given at the end of this paper.This paper uses 1744 China's A-share listed companies in Shanghai and Shenzhen stock markets from 2012 to 2017,10464 samples in total,as the research sample.The data comes from CSMAR database and RESSET database,and uses STATA 12.0 software for empirical analysis.This paper uses the mediation effect test method and steps,and constructs a multiple-variable regression model to test the link between the proportion of female executives and company performance and the mediating effect of risk-taking levels in the relationship between the two.Considering that there may be endogeneity problems,this paper tests the robustness of the research results by Heckman two-stage test after completing the empirical research.This paper has found that:(1)female executives have a significant negative effect on the company's risk-taking level.Because of their cautious personality traits,female executives are less prone to get over-confident than male executives,and at the same time show significant risk aversion,so that women tend to avoid high-risk choices when making decisions.(2)Female executives have an inhibitory effect on the improvement of corporate performance.Because female executives' cautious personality traits,they tend to avoid risks,and the decisions made by them are more stable,avoiding some high-risk projects.However,since they are too cautious and conservative,they are easier to miss opportunities.In addition,by strengthening the company's accounting conservatism,female executives may reduce investors' expectations of the company's future earnings or make managers more cautious about some risky project decisions.affecting company performance.(3)There is a positive relationship between risk-taking level and company performance.The reason is that risk-taking helps to increase the value of the company in the stock market.The capital asset pricing theory believes that the additional rate of return is the compensation for the additional risks they bearn The higher the company's risk-taking level is,the higher rate of return on risk the investors will expect,and thus the company's stock market value will be higher.(4)Female executives have a negative effect on company performance by reducing the level of corporate risk-taking.The reason is that female executives have a weaker tendency to over-confidence,and they always rationally estimate the company's stock value and the income fluctuations and risks of the decisions and projects,thereby avoiding higher corporate risk exposure,constraining the free cash flow available to company management,restraining investment,etc.At the same time,since women are too cautious in making decisions and avoid financial risks and bankruptcy threats caused by excessive risks.it will reduce the company's risk-taking level,resulting in poorer company performance.At the end of this paper,based on the research conclusions,relevant policy implications and research prospects are proposed.