Female Executives and Corporate Cash Holdings
11 Pages Posted: 7 Aug 2018
Date Written: December 1, 2017
I find that firms led by female top executives hold more cash, partly due to precautionary motives. To overcome endogeneity concerns, I employ several econometric techniques, including an instrumental variable analysis based on a historical event that resulted in a plausibly exogenous variation in the female workforce participation. Overall, my results are consistent with the view that greater risk-aversion leads female executives to hold more cash.
Keywords: gender differences, cash holding, risk-aversion, precautionary motive
JEL Classification: J16, G30
Suggested Citation: Suggested Citation