The Empirical Study Of Female Executives And Corporate Performance

This article selected companies listed on Shanghai Stock Exchange and Shenzhen Stock Exchange from 2009 to 2014 and discussed the relationship between female executives and corporate performance.The results showed that listed companies had high average senior management staff of 18,but the number of female executives on average only about 3,and the proportion of female executives was about 18%.Although the proportion of female executives was as high as 58.3% in some companies,there was no female executives in some listed companies.The percent of female executives in agricultural companies was 11.8% in 2009 and 21% in 2014,which was still less than that in industrial companies.In a word,although the proportion of female executives increased year by year,but it was still relatively low,which meant that women in the senior management staff was still in a relatively weak position.The results of quantitative analysis showed that the proportion of female executives positively affected the company performance.Specifically,there was a positive correlation between the proportion of female executives and the rate of return on assets and net profit rate of total assets,that was,if the proportion of female executives increased one percentage,the rate of return on assets and net profit rate of total assets would increase 2.1% and 3.2% separately.Even after controlling the industry and year variables,there was still a significant positive relationship between company performance and the proportion of female executives.Further quantitative research identified two pathways,namely,shareholder structure and individual characteristics.Briefly speaking,the proportion of the first largest shareholder would negatively affect corporate performance,but the cross variable of the proportion of female executives and the first big shareholder was positive,which indicated that the side effects of the proportion of female executives could inhibit the largest shareholder of the company performance so as to enhance enterprise performance.In addition,the average education level of female executives was less than male executives,while the age of former was 3-4 years younger than that of latter.Although executives age concentration degree and education concentration degree negatively affected corporate performance,but the cross variable of executives age concentration or education concentration degress and the proportion of female executives was significantly positive,which meant that female executives can improve enterprise performance from the education or age diversity complementary.The empirical results in this paper had some implications in theory and practice.In theory,these results could provide an enrich,detailed and distinct answer to the relationship between female executives and corporate performance.And the policy recommendations both for companies and government would be helpful for improving the positive effects of female executives on the industries and agriculture companies where male always dominated.