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Impact of female CFO board membership on firm investment efficiency: does institutional gender parity matter? Evidence from emerging economies

Ashiq Ali & Munir Khan

Journal of Economic and Administrative Sciences2024https://doi.org/10.1108/jeas-08-2023-0221article
ABDC C
Weight
0.42

What the paper says

Purpose This study analyzes how possessing female chief financial officers (CFOs) on boards in emerging economies impacts on firm investment efficiency and addresses overinvestment and underinvestment tendencies of firms based on this aspect. The study draws from resource-based and stakeholder theories. Additionally, it explores how institutional gender parity influences this relationship. Design/methodology/approach The study uses a two-step system generalized method of moment (GMM) estimation technique to test its hypotheses. Data span from 2010 to 2021 and cover firms in emerging economies. The approach addresses endogeneity and accounts for unobserved heterogeneity in the data. Findings The study’s results support the hypothesis that firms with female CFO decrease overinvestment and underinvestment tendencies, indicating improved investment efficiency. This effect is more pronounced in emerging economies with higher gender parity and support for female leadership. Practical implications The study’s findings suggest fostering gender parity and female leadership in emerging economies to maximize the benefits of female CFO board membership. Policymakers should advocate for corporate governance practices and gender parity through supportive policies to advance economic outcomes and competitiveness. Originality/value This study advances existing literature by highlighting the positive outcomes of having female CFOs on boards in emerging economies. It emphasizes gender diversity’s importance in leadership and advocates for inclusive institutional frameworks.

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https://doi.org/https://doi.org/10.1108/jeas-08-2023-0221

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@article{ashiq2024,
  title        = {{Impact of female CFO board membership on firm investment efficiency: does institutional gender parity matter? Evidence from emerging economies}},
  author       = {Ashiq Ali & Munir Khan},
  journal      = {Journal of Economic and Administrative Sciences},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.1108/jeas-08-2023-0221},
}

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Impact of female CFO board membership on firm investment efficiency: does institutional gender parity matter? Evidence from emerging economies

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Evidence weight

0.42

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.29 × 0.4 = 0.11
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.