Gender Diversity in the Boardroom and Risk Management: A Case of R&D Investment
By Shimin Chen, Xu Ni, J. Tong. 2016
193 citations recorded by the source corpus.
Increasing gender diversity in the boardroom has been promoted as a way to enhance corporate governance and risk management. This study empirically examines whether boards with more female directors play a role in reducing R&D risk. We first show that female directors help to reduce the positive relationship between R&D investment and future performance volatility. We then report that firms with more gender-diverse boards exhibit a lower adverse effect of R&D on the cost of debt. These results are robust to endogeneity analysis, alternative measures of gender diversity and risky investment, and other sensitivity tests. Overall, our results suggest that female directors improve board effectiveness in risk management with respect to R&D investment.
Subfields: Accounting, Gender Studies, Management of Technology and Innovation
View Paper: https://www.semanticscholar.org/paper/1365aca2dce06a69cf127323b7806fe1aa3fc407
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Citations in the corpus
- Women in the boardroom and their impact on climate change related disclosure (2017, background): “Chen et al. (2016) suggest that female directors improve board effectiveness in risk management with respect to R&D investment.”