Influence Of Female Executives On Enterprise Performance

With the development of economy and the progress of society,more and more women are stepping out of their families and entering the workplace.They are also taking on more and more important jobs in the workplace,becoming corporate executives and even serving as general manager and chairman of the board of directors.In recent years,female executives have attracted more and more attention.European countries have enacted laws to impose quotas on female directors.Norway,as the first country to implement the quota system,has conducted in-depth discussions on the issue of gender quotas since 2001.On December 9,2005,the board gender quota system came into effect,which required all limited liability companies listed in Norway to comply with it.In 2012,the European Union revised its quota plan for female directors to force an increase in the proportion of female board members.So far,more than 100 countries and regions in the world have implemented gender quotas,mainly in the political and business sectors.In the final analysis,the gender quota system is actually a distribution system,that is,within the limited job resources,the number of men and women who can access the resources is distributed.It usually provides by law that if the number of women does not reach a certain percentage of the total number of people on the board,the company will face the possibility of dissolution.Compared with developed countries such as the U.S.and Europe,China has done little to push women into management positions,and there is no quota on female directors.It can be seen from the history that in the long history of China’s feudal society for thousands of years,women were imprisoned in the family for a long time.Confucianism,as the mainstream of traditional thought,believed that women should take care of their husbands and children and should not appear in public.However,with the founding of new China,the idea of gender equality was accepted and recognized by the public.Chinese women also actively participated in the construction of new China,supporting half of China’s sky and even playing an increasingly important role in the world.Theory there are a lot of Europe and the United States study found that men and women leaders in the workplace has many different style: relative to the women’s leadership,male leaders tend to be more strong performance,are not good at communicating with partners,overconfidence and more likely to act more radical,the probability of risk is bigger,and because women leaders do things more meticulous to more accurately capture some useful information for the enterprise,and has more affinity,so can make the work more efficiently,decision-making is more accurate.Many empirical studies using the data of listed companies in European and American countries also show that the proportion of female executives is positively correlated with corporate performance.While women are accelerating their entry into the workplace,China’s insurance industry has entered a new era with the rapid development of China’s economy.In order to improve corporate performance,insurance companies are seeking breakthroughs in many aspects.A more perfect management structure and diversified and differentiated development have become a non-negligible link.However,few existing studies have focused on the insurance industry,so this paper explores and studies the relationship between female executives and the performance of insurance companies,hoping to provide assistance for their decision-making by analyzing the current situation of the development of China’s insurance industry,the characteristics of female executives and empirical studies.The main contents of this paper are as follows:The first chapter is the introduction,which elaborates the research background and significance of this paper,sorts out the relevant literature on the influence of female senior executives on corporate performance,analyzes the research status quo and development trend at home and abroad,and expounds the main content,research methods,as well as the main innovation points and shortcomings of this paper.The second chapter mainly introduces the definition and determination of profitability and solvency to measure the performance of insurance companies.Then,it introduces the theoretical basis of female executives and corporate performance,including high-level echelon theory,principal-agent theory,human capital theory,stakeholder theory,etc.,so as to lay a sufficient theoretical foundation for the subsequent research and analysis.The third chapter introduces the development status of China’s insurance industry: all indicators show that China’s insurance industry is developing rapidly.Then,it analyzes the characteristics of female executives in Chinese insurance companies and finds that the proportion of female executives is low and the average education background and age are lower than that of male executives.The fourth chapter makes an empirical analysis on the performance of female executives in insurance companies.The results show that there is a significant positive correlation between the proportion of female senior executives and the profitability and solvency of insurance companies,suggesting that increasing the proportion of female senior executives is conducive to improving the profitability and solvency of insurance companies,which may have effects such as better risk aversion and higher work efficiency.There is a significant negative correlation between the average age of female executives and the profitability and solvency of insurance companies,indicating that the participation of older women in the senior management team is not conducive to the improvement of the profitability and solvency of insurance companies,which may be influenced by reasons such as lack of energy or slack work.However,there was no significant correlation between the average female executive education and the profitability and solvency of insurance companies.The fifth chapter is the conclusion and Enlightenment of the whole paper,and puts forward some suggestions on how to develop the insurance industry better and faster and how to give full play to the role of female executives.The innovation of this paper may be in the following two aspects: first,there are studies on the impact of female executives on corporate performance in existing literatures based on different industries or regions,but there are few studies on China’s insurance industry.This paper focuses on the developing insurance industry.Second,in this paper,the empirical results show that the senior women’s influence on the performance of an insurance company,is helpful to further understand the factors affecting the performance of insurance company,to give regulators related policies for better and faster development of insurance industry provides a train of thought,achieve executives personal development,enhance enterprise value,social public benefit multi-win-win situation.There are still some shortcomings in this paper.This paper only discusses the influence of the gender ratio,education background and age of female executives on the performance of insurance companies,without considering the factors such as enterprise environment and resources.Secondly,this paper only USES the four indicators of return on total assets,return on equity,core solvency adequacy ratio and comprehensive solvency adequacy ratio to measure the performance of insurance companies.In fact,the performance evaluation of insurance companies also includes operating capacity,development capacity and other aspects,but this paper does not cover them.And because the public disclosure of information is less,the China insurance industry association since 2015 to demanding that the insurance company executives in solvency information report disclosure of gender,age,record of formal schooling and other information,so in this paper,the empirical study of data is only based on the data in the past three years,so may cause deviation will eventually make the empirical results.