Chairmen's Offspring Gender And Financialization Of Private Enterprises

In recent years,more and more entity enterprises have increased the allocation of financial assets,while the proportion of investment in main businesses has been shrinking.The phenomenon of “Financialization of Entity Enterprises” in China has become increasingly fierce and has received widespread attention from various circles.Under this situation,it is profoundly necessary for academia to explore the influencing factors of the financialization of entity enterprises.Executives are the direct decisionmaking subjects of corporate investment behavior.The physiological characteristics and personal experiences of executives significantly affect their cognitive abilities and values,and these factors will prompt executives to make highly personalized decisions.In the same external environment,the internal decision makers of different enterprises have significant differences in the scale of financial asset allocation based on differences in their management styles.Therefore,based on the high-level echelon theory,this paper discusses the relationship between the offspring gender of senior managers and the allocation of financial assets.Since the chairman in China is essentially the actual controller of the company,this paper selects private listed companies that issued A shares on the Shanghai or Shenzhen Stock Exchange from 2000 to 2017 as a sample.We conduct an empirical test on the relationship between the offspring gender of private enterprise chairman and the degree of corporate financialization.Then this paper explores the heterogeneity of the offspring gender of the chairman on corporate financialization from three aspects: the educational background,the age of the chairman,and the financial development level of the corporate's region.This paper further discusses the mechanism between the offspring gender of the chairman and the financialization of the entity.The empirical results show that:(1)The chairmen of the board who raised daughter invested more in financial assets,and they are more inclined to invest in financial assets with low risk;(2)Compared with the chairmen with a high education background,the chairmen with a low education background more susceptible to the influence of their daughters and thus increasing the degree of corporate financialization;(3)When the chairman is older,the impact of parenting daughters on the degree of corporate financialization will be weakened;(4)The company's position in the slow financial development is not conducive to the role of "daughter effect" on the financialization of the company;(5)The main reason that the chairman's raising daughters influences the company's investment decisions is that their psychological characteristics are affected by the “daughter effect”,which makes them less prone to overconfidence and more robust to make decisions.From the perspective of the offspring gender of the chairman,this paper expands the relevant research on the individual heterogeneity of executives in the field of corporate governance,and enriches the theory of high-level echelon.In addition,this paper also provides more micro-level evidence for corporate financialization.In a practical sense,the conclusions of this paper help corporate executives realize that family background can have an impact on their management style and make them have corresponding decision-making preferences,so they must be alert when implementing decision-making behavior.