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Exploring the influence of women’s leadership and corporate governance on operational liquidity: The glass cliff effect

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  • Dongli Cao
  • Safdar Husain Tahir
  • Syed Maisam Raza Rizvi
  • Khuda Bakhsh Khan

Abstract

This research investigates the glass cliff effect and the positions held by women in leadership roles, focusing on their impact on operational liquidity. The study delves into the relationship between corporate governance attributes and operational liquidity in 60 non-financial companies listed on the Pakistan Stock Exchange during Covid-19. Utilizing Quine-McCluskey technique and fuzzy set Qualitative Comparative Analysis (fsQCA), it examines the combined effect of Women on the Board, Board Size, Ownership by Blockholders, Board Qualifications and Busy Directors on Operational Liquidity. The necessary condition analysis (NCA) emphasises that firms can operate without reliance on any particular variable taken in the study. The sufficiency analysis provided an expanded understanding of the three conditions leading to the same outcome both before and during the pandemic. This research highlights the significance of the glass cliff effect and emphasizes the pivotal role of women in effectively managing liquidity during times of crisis. Additionally, it provides valuable insights for policymakers regarding the impact of Covid-19 on the interplay between corporate governance characteristics and operational liquidity.

Suggested Citation

  • Dongli Cao & Safdar Husain Tahir & Syed Maisam Raza Rizvi & Khuda Bakhsh Khan, 2024. "Exploring the influence of women’s leadership and corporate governance on operational liquidity: The glass cliff effect," PLOS ONE, Public Library of Science, vol. 19(5), pages 1-18, May.
    • Handle: RePEc:plo:pone00:0302210
    DOI: 10.1371/journal.pone.0302210
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    References listed on IDEAS

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    1. Lilas Demmou & Guido Franco & Sara Calligaris & Dennis Dlugosch, 2022. "Liquidity Shortfalls during the COVID 19 Outbreak: Assessment and Policy Responses," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 532-33, pages 47-61.
    2. Heba Abou-El-Sood, 2023. "The impact of Covid-19 pandemic on the value relevance of cash flows: evidence from banks," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 20(1), pages 299-315, April.
    3. Aitzaz Ahsan Alias Sarang & Nicolas Aubert & Xavier Hollandts, 2017. "Board of Director’s Composition and Corporate Cash Holdings: Evidence from French Listed Companies," Post-Print hal-03727127, HAL.
    4. Ali Uyar & Cemil Kuzey, 2014. "Determinants of corporate cash holdings: evidence from the emerging market of Turkey," Applied Economics, Taylor & Francis Journals, vol. 46(9), pages 1035-1048, March.
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