How Does Gender Influence Corporate Risk Management and Firm Survival?

Abstract

Abstract

Exploring the role of CEO gender in corporate financial decision-making, this thesis uses a robust dataset consisting of 600 U.S. listed firms between 2013 and 2023. The research examines how CEO gender influences three financial metrics: leverage ratios, stock return volatility, and firm survival, using panel data regression techniques that adjust for variables such as CEO age, firm size, and market performance.

Contradicting the conventional belief that associates female leadership with conservative financial practices, the results of this thesis reveal no significant disparity in leverage or stock return volatility between firms led by female and male CEOs. Furthermore, an unexpected finding emerges, indicating a lower likelihood of long-term survival for firms under female leadership, encouraging a revision of the risk-averse stereotype commonly attributed to female executives.

The conclusions drawn from this research contribute to a nuanced understanding of behavioral finance, challenging previous assumptions about gender and risk aversion. By showing how CEO gender can affect corporate strategy, the thesis provides important information for stakeholders interested in improving corporate governance.