The Influence Of Female Executives On The Inefficient Investment And Enterprise Value

Investment is one of the most important economic activities in enterprises,through which enterprises could improve the efficiency of the allocation of resources.The enterprise value is closely related to the efficiency of the investment behavior.In fact,because of asymmetric information and agency cost,the enterprises have inefficient investment,which is represented as under-investment or over-investment.The efficiency of the investment plays an important role in the development of the enterprises.In recent years,female executives raise more and more attention,the research of the relationship between female executives and investment behavior becomes more extensive.In comparison with male,female are more careful and risk-averse.It urgently needs to be answered that how female executives influence the efficiency of investment and the enterprise value.Based on the above,this paper selects the data in Shanghai and Shenzhen A-share listed enterprises from2010-2014 as samples,establishes multiple linear regression model to research the relationship between female executives,inefficient investment and enterprise value.Further to distinguish the different nature of property rights and the different macroeconomic cycle,this paper explores how female executives'behavior change in different circumstances.Finally,research results are shown below:(1)female executives would increase the inefficient investment in under-investment enterprises,but decrease the inefficient investment in over-investment enterprises.(2)the investment behavior of female executives would change with different nature of property rights and different macroeconomic cycle.(3)because of their characteristics,they would reduce the fluctuation of the enterprise performance,and female executives would not impair the enterprise value.Generally speaking,the prudence of female executives is not a bad thing.