Work

Female directors on the board and investment efficiency: evidence from Korea

Year: 2019

Type: article

Abstract: We investigate whether female board representation affects investment efficiency at Korean publicly traded companies from 2006 to 2014. We find a positive association between female directorship and investment efficiency. For a subsample of firms that are classified into over- and under-investment groups, we find that the subsample of firms with female directors is less likely to over-invest compared to the group without female directors. This implies that female directors’ risk-aversion, conservatism, and prudence affect investment efficiency by reducing over-investment rather than reducing under-investment. Other robustness tests corroborate our conclusion that female directors help to improve investment efficiency.

Source: Asian Business & Management

DOI: 10.1057/s41291-019-00066-2

Authors: Young Zik Shin, Jeung-Yoon Chang, Kyeongmin Jeon, Hyunpyo Kim

Institutions: Sungkyunkwan University, Shippensburg University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Gender equality, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,690