Abstract
The role of female executives is becoming increasingly important as the gender composition of the workforce shifts and stakeholders, including consumers, become more diverse. In general, female CEOs, CFOs, and other female executives help to improve corporate governance by increasing board diversity, which in turn helps to increase transparency. This study focuses on the financial industry (banking, insurance, and securities), with a focus on publicly traded companies from 2020 to 2022. While the proportion of female registered directors has been increasing in recent years, it is still significantly below the European Union's recommended ratio. In addition, I examine the characteristics of financial firms that appoint women executives and find that there is no special propensity for the appointment of women executives other than the size of the board of directors. In addition, while previous studies have shown that women's prudent decision-making is closely related to financial conservatism, this study found no significant association between female executives and conservatism in the Korean financial industry, but rather a significant association between female executives and capital share. This study shows that female executives in the financial industry are formally selected in proportion to the size of the company and the size of the board, but it is significant in that I shed light on the new motivation and the role of female executives.
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