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Female directors, ESG performance and enterprise financialization

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  • Huang, Yujie
  • Li, Shanshan

Abstract

In this paper, we empirically analyze the impact of female directors on enterprise financialization, and examine the role played by ESG performance based on the data of Chinese A-share listed firms between 2010 and 2021. We show that an increase in the proportion of female directors significantly inhibits enterprise financialization, and this conclusion still holds after a series of robustness tests. An increase in the proportion of female directors can inhibit enterprise financialization by enhancing enterprise ESG performance. Further research finds that the negative effect of female directors on enterprise financialization is more significant in non-state-owned enterprises and high financing constraint enterprises. Overall, we provide an effective way to weaken the risk of enterprise financialization from the perspective of firms’ internal governance structure, and expand the study of female economic behavior in enterprise governance.

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  • Huang, Yujie & Li, Shanshan, 2024. "Female directors, ESG performance and enterprise financialization," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002964
    DOI: 10.1016/j.frl.2024.105266
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    References listed on IDEAS

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    4. He, Yuyou, 2025. "Digital Transformation and Enterprise Financialization: A discussion on the mechanism of action," Finance Research Letters, Elsevier, vol. 86(PG).
    5. Yunsong Wang, 2025. "A Study of the Impact of Corporate Financialisation on Capital-Deepening Enterprises’ Output—Empirical Evidence from China’s A-Share Market," IJFS, MDPI, vol. 13(3), pages 1-25, August.
    6. Luo, Shanshan & Sun, Ze & Zhang, Xiangjian, 2025. "Does green marketing improve corporate performance?," International Review of Economics & Finance, Elsevier, vol. 97(C).
    7. Li, Yumin & Zhu, Lei & Ke, Yanrong & Wu, Xiaohui, 2024. "Does common institutional ownership restrain corporate financialization?," International Review of Economics & Finance, Elsevier, vol. 95(C).
    8. Gao, Chengyin & Zhang, Shujun, 2025. "ESG performance and corporate financialization: A dual perspective of risk management and value creation," Finance Research Letters, Elsevier, vol. 71(C).
    9. Ni, Yanbin, 2025. "Female executives and corporate brand competitiveness: The mediating role of corporate social responsibility," International Review of Financial Analysis, Elsevier, vol. 97(C).
    10. Zhang, Jing & Piao, Ming, 2025. "The impact of artificial intelligence on firms' financialization: The mediating effects of labor productivity," International Review of Economics & Finance, Elsevier, vol. 102(C).

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