Do Female Executives Make Different Financial Policies? Evidence from Chinese Listed Company

Abstract

We examine the female executives and their impact on corporate financial policies, including investment decision, external financing, quality of internal control and cost efficiency. We find that those female executives who are risk aversion invest less in expenditure investment decision and engage less external financing. In addition, we also find that firms with female executives exhibit higher quality of internal control and greater cost efficiency. Our results are consistent with conservatism of female executives. Furthermore, we identify whether female executives make corporate financial policies differently in high-growth and low-growth industry. We find that female executive emphases on restrain expansion decision in high-growth industry, but internal management in low-growth industry. Finally, we find that the conservatism behavior of female executives is more benefit on financial performance in low-growth industry.