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Female Bank Executives: Impact on Performance and Risk Taking Substitutes?


  • Cindy Truong, Yan Wendy Wu

    () (LCERPA)


This paper studies the impact of female executives on the performance and risk taking of US banks. With a sample of US banks from 2002 to 2010, we find that the inclusion of female executives increases bank performance after addressing endogeneity and reverse causality issues. We also provide evidence that female executives decrease the risk taking of banks. These results suggest that there is added value to having female executives on the executive team. We also find that a more balanced gender ratio results in a greater impact on bank performance and risk taking. This supports the argument to increase gender diversity in executive level positions for females.

Suggested Citation

  • Cindy Truong, Yan Wendy Wu, 2014. "Female Bank Executives: Impact on Performance and Risk Taking Substitutes?," LCERPA Working Papers wm0067, Laurier Centre for Economic Research and Policy Analysis.
  • Handle: RePEc:wlu:lcerpa:wm0067

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    References listed on IDEAS

    1. Kevin Campbell & Antonio Mínguez-Vera, 2008. "Gender Diversity in the Boardroom and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 83(3), pages 435-451, December.
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    More about this item


    Gender; Bank Executive; Diversity;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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