Beyond gender diversity: How specific attributes of female directors affect financial default risk
Abstract/Description
This study explores the impact of women directors on the financial default risk (FDR) of US firms. The research indicates that the presence of women directors contributes to a reduction in FDR. Notably, white and independent women directors play a significant role in decreasing FDR, while women of color do not exhibit a similar effect. These findings primarily stem from the resource dependence and monitoring mechanisms. Specifically, women directors demonstrate a tendency to mitigate FDR in firms facing financial constraints, information asymmetry, and weak governance structures.
Track
Finance
Session Number/Theme
3A: Finance
Session Chair
Dr. Mohsin Zahid Khawaja ; Dr. Falik Shear
Start Date/Time
30-5-2024 5:00 PM
End Date/Time
30-5-2024 6:00 PM
Location
MCS – 3 AMAN CED Building
Recommended Citation
SARANG, A. (2024). Beyond gender diversity: How specific attributes of female directors affect financial default risk. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2024/program/32
COinS
Beyond gender diversity: How specific attributes of female directors affect financial default risk
MCS – 3 AMAN CED Building
This study explores the impact of women directors on the financial default risk (FDR) of US firms. The research indicates that the presence of women directors contributes to a reduction in FDR. Notably, white and independent women directors play a significant role in decreasing FDR, while women of color do not exhibit a similar effect. These findings primarily stem from the resource dependence and monitoring mechanisms. Specifically, women directors demonstrate a tendency to mitigate FDR in firms facing financial constraints, information asymmetry, and weak governance structures.
