The impact of top executive gender on asset prices: Evidence from stock price crash risk

Li, Y.; Zeng, Y.

Abstract

We examine the implication of executive gender on asset prices. Using a large sample of US public rms during 2006{2015, we nd a negative association between female CFOs and future stock price crash risk. However, the impact of female CEOs on crash risk is not statistically signicant. The results support the notion that CFOs play a stronger role than CEOs in curbing bad news hoarding activities be- cause CFOs' primary duties are nancial reporting and planning. Our ndings are robust to several econometric specications controlling for potential endogeneity and to alternative measures of crash risk. At last, we show that the negative relation be- tween female CFOs and future stock price crash risk is more pronounced among rms with weaker corporate governance, less market competition, lower analyst coverage, and higher nancial leverage. Collectively, our evidence highlights the importance of CFO gender for rm nancial decision making and stock return tail risk.

Citation

Li, Y., & Zeng, Y. (2019). The impact of top executive gender on asset prices: Evidence from stock price crash risk. Journal of Corporate Finance, 58, 528-550. https://doi.org/10.1016/j.jcorpfin.2019.07.005

• Journal Article Type: Article
• Acceptance Date: Jul 11, 2019
• Online Publication Date: Jul 15, 2019
• Publication Date: Oct 31, 2019
• Deposit Date: Jul 12, 2019
• Publicly Available Date: Jan 15, 2021
• Journal: Journal of Corporate Finance
• Print ISSN: 0929-1199
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 58
• Pages: 528-550
• DOI: https://doi.org/10.1016/j.jcorpfin.2019.07.005
• Public URL: https://durham-repository.worktribe.com/output/1297925