Department of Economics and Business Economics

Nina Smith

Female-Led Firms: Performance and Risk Attitudes

Research output: Working paperResearch

This paper investigates the relationship between gender of the CEO and composition of the
board of directors (female chairman and share of women in the boardroom) and firm’s risk
attitudes measured as variability in four firm outcome variables (investments, profits, return to
equity, and sales). Using a merged employer-employee panel sample of Danish companies
with more than 50 employees, we find extensive evidence of a negative association between
female CEO and firm’s risk attitudes. This finding might be consistent with the theoretical
assumption according to which women typically present a substantially higher risk aversion
profile and put more effort in monitoring firm activities than men in the financial matter
domains. A number of robustness checks corroborate and better explain our main findings.
Original languageEnglish
Place of publicationBonn
PublisherIZA. Institute for the Study of Labor / Forschungsinstitut zur Zukunft der Arbeit
Pages1-24
Number of pages24
Publication statusPublished - Sep 2013
SeriesIZA Discussion Paper
Number7613

    Research areas

  • female CEO, risk aversion, firm performance

See relations at Aarhus University Citationformats

ID: 68462822