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She-E-Os and the Cost of Debt: Do Female CEOs Pay Less for Credit?

Author

Listed:
  • Usman Muhammad

    (Xi’an Jiaotong University, School of Management, Xi'an, China)

  • Farooq Muhammad Umar

    (Xi’an Jiaotong University, School of Management, Xi'an, China)

  • Zhang Junrui

    (Xi’an Jiaotong University, School of Management, Xi'an, China)

  • Makki Muhammad Abdul Majid

    (The Islamia University of Bahawalpur, Department of Commerce, Bahawalpur, Pakistan)

  • Sun Junqin

    (Xi’an Jiaotong University, School of Management, Xi'an, China)

Abstract

Does the CEO’s gender matter to lenders? Using data from 2006 to 2015 for listed companies in China, we find reliable evidence that lenders charge firms led by female CEOs (She-E-Os) less for debt than they do from firms led by male. In addition, we find that the leadership structure of state-owned enterprises (SOEs) also matters to lenders because SOEs with female CEOs have lower cost of debt than do those with male CEOs. Our findings remain consistent after controlling for endogeneity issue.

Suggested Citation

  • Usman Muhammad & Farooq Muhammad Umar & Zhang Junrui & Makki Muhammad Abdul Majid & Sun Junqin, 2019. "She-E-Os and the Cost of Debt: Do Female CEOs Pay Less for Credit?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(1), pages 1-7, January.
    • Handle: RePEc:bpj:bejeap:v:19:y:2019:i:1:p:7:n:12
    DOI: 10.1515/bejeap-2018-0177
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    References listed on IDEAS

    as
    1. Borisova, Ginka & Fotak, Veljko & Holland, Kateryna & Megginson, William L., 2015. "Government ownership and the cost of debt: Evidence from government investments in publicly traded firms," Journal of Financial Economics, Elsevier, vol. 118(1), pages 168-191.
    2. Muravyev, Alexander & Talavera, Oleksandr & Schäfer, Dorothea, 2009. "Entrepreneurs' gender and financial constraints: Evidence from international data," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 270-286, June.
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    More about this item

    Keywords

    CEO gender; cost of debt; creditors; government ownership;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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