IDEAS home Printed from https://ideas.repec.org/p/gmf/papers/2020-03.html
   My bibliography  Save this paper

Political Connections and Banking Performance: The Moderating Effect of Gender Diversity

Author

Listed:
  • Catarina Proença

    (Ph.D. Student at Faculty of Economics, University of Coimbra)

  • Mário Augusto

    (Centre for Business and Economics (CeBER) and Faculty of Economics, University of Coimbra)

  • José Murteira

    (Centre for Business and Economics (CeBER) and Faculty of Economics, University of Coimbra)

Abstract

The present study investigates the effect of gender diversity on the impact of board members' political connections on banking performance. Using panel data on 83 banks supervised by the European Central Bank (ECB) for the period 2013-2017, our results suggest that when gender diversity is high, there is a U-shaped nonlinear relationship between political connections and banking performance. Empirical evidence also indicates that differentiating characteristics of women, such as greater ethical concern and risk aversion, help mitigate the negative effects of political connections on banking performance, safeguarding the institutions’ interests from the adverse effects of personal agendas. In addition, our results also suggest that a minimum of 14% gender diversity can actually contribute to a greater social justice and beneficial structural change. Overall, these general conclusions seem fairly robust, being drawn from several versions of the regression model adopted in the study, using different sets of control variates and different gender diversity measures.

Suggested Citation

  • Catarina Proença & Mário Augusto & José Murteira, 2020. "Political Connections and Banking Performance: The Moderating Effect of Gender Diversity," CeBER Working Papers 2020-03, Centre for Business and Economics Research (CeBER), University of Coimbra.
    • Handle: RePEc:gmf:papers:2020-03
    as

    Download full text from publisher

    File URL: https://bee.fe.uc.pt/working-paper/pdf/aee4420b5046463391b26683a853df32/wp-ceber-2020-3.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Political connections; Gender diversity; Bank performance; ECB; GMM;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gmf:papers:2020-03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sofia Antunes (email available below). General contact details of provider: https://edirc.repec.org/data/cebucpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.