We show that CEO gender helps explain corporate decision making. In particular, we document that firms run by female CEOs have lower leverage, less volatile earnings, and a higher chance of survival than firms run by male CEOs. We further document that this risk-avoidance behavior leads to distortions in the capital allocation process. In particular, female CEOs tend to under invest in comparison to male CEOs. These results have important macroeconomic implications for long-term growth.
|Publication status||Published - Jun 2011|
- ender, risk-taking, capital allocation