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Does gender promote ethical and risk-averse behavior among CEOs? An illustration through related-party transactions

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  • Farooq, Muhammad Umar
  • Su, Kun
  • Boubaker, Sabri
  • Ali Gull, Ammar

Abstract

This study provides direct evidence of whether female CEOs are more ethical or risk-averse by investigating the relationship between female CEOs and related-party transactions (hereafter RPTs). Using a sample of Chinese listed firms over 2005−2018, we find evidence that female CEO firms engage in fewer RPTs, suggesting that female CEOs are not only risk-averse but also more ethical. Moreover, we show that firm performance increases when these firms allow RPTs, suggesting that female CEOs are less likely to allow opportunistic RPTs. Finally, we find that negative association between female CEOs and RPTs is more pronounced in firms more likely to use RPTs (i.e., state-owned enterprises).

Suggested Citation

  • Farooq, Muhammad Umar & Su, Kun & Boubaker, Sabri & Ali Gull, Ammar, 2022. "Does gender promote ethical and risk-averse behavior among CEOs? An illustration through related-party transactions," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000538
    DOI: 10.1016/j.frl.2022.102730
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    References listed on IDEAS

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    Cited by:

    1. El-Helaly, Moataz & Al-Dah, Bilal, 2022. "Related party transactions and dividend payouts," Finance Research Letters, Elsevier, vol. 49(C).
    2. Ammar Ali Gull & Nazim Hussain & Sana Akbar Khan & Zaheer Khan & Asif Saeed, 2023. "Governing Corporate Social Responsibility Decoupling: The Effect of the Governance Committee on Corporate Social Responsibility Decoupling," Journal of Business Ethics, Springer, vol. 185(2), pages 349-374, June.
    3. Ammar Ali Gull & Asif Saeed & Muhammad Tahir Suleman & Rizwan Mushtaq, 2022. "Revisiting the association between environmental performance and financial performance: Does the level of environmental orientation matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1647-1662, September.
    4. IWASAKI, Ichiro & MA, Xinxin & MIZOBATA, Satoshi, 2024. "Board Gender Diversity in China and Eastern Europe," CEI Working Paper Series 2023-09, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    5. Ammar Ali Gull & Muhammad Atif & Tanveer Ahsan & Imen Derouiche, 2022. "Does waste management affect firm performance? International evidence," Post-Print hal-03866049, HAL.
    6. Qi, Songqiao & Sun, Tianmin, 2023. "Directors appointment of non-largest shareholders and related-party transactions," Finance Research Letters, Elsevier, vol. 58(PC).
    7. Gull, Ammar Ali & Atif, Muhammad & Ahsan, Tanveer & Derouiche, Imen, 2022. "Does waste management affect firm performance? International evidence," Economic Modelling, Elsevier, vol. 114(C).
    8. Elisabete Vieira & Mara Madaleno & Júlio Lobão, 2022. "Gender Diversity in Leadership: A Bibliometric Analysis and Future Research Directions," IJFS, MDPI, vol. 10(3), pages 1-14, July.
    9. Birindelli, Giuliana & Chiappini, Helen & Jalal, Raja Nabeel-Ud-Din, 2024. "Greenwashing, bank financial performance and the moderating role of gender diversity," Research in International Business and Finance, Elsevier, vol. 69(C).

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    More about this item

    Keywords

    Female CEOs; RPTs; Ethical; Risk-averse;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • G3 - Financial Economics - - Corporate Finance and Governance

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