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Gender diversity, state control, and corporate risk-taking: Evidence from China

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  • Khaw, Karren Lee-Hwei
  • Liao, Jing
  • Tripe, David
  • Wongchoti, Udomsak

Abstract

Corporate risk-taking activities among Chinese corporations generally increase with the presence of male-only boards but are mitigated by state ownership. The positive relation between corporate risk-taking and male dominance in boardrooms became more prominent after the Government reduced its ownership control following the Non-Tradable Share (NTS) reform launched in 2005. The reduction in corporate risk-taking through state ownership tends to weaken after the NTS reform. Our results are robust to endogeneity issues and highlight the benefit of gender diversity in alleviating excess corporate risk-taking behavior, especially in countries with relatively weaker overall investor protection.

Suggested Citation

  • Khaw, Karren Lee-Hwei & Liao, Jing & Tripe, David & Wongchoti, Udomsak, 2016. "Gender diversity, state control, and corporate risk-taking: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 39(C), pages 141-158.
    • Handle: RePEc:eee:pacfin:v:39:y:2016:i:c:p:141-158
    DOI: 10.1016/j.pacfin.2016.06.002
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