TITLE:
Impact of Female Executive on Investment Efficiency of Listed Companies in Shanghai Stock Market: A Case of Over-Investment
AUTHORS:
Mengyi Fan, Wasin Phromphitakkul
KEYWORDS:
Female Executives, Investment Efficiency, A Listed Company Over-Investment
JOURNAL NAME:
Modern Economy,
Vol.12 No.6,
June
28,
2021
ABSTRACT: The purpose of this study is to analyze the
relationships between the presence of female in top management teams and
over-investment behavior of listed companies. This study draws on Richardson’s
(2006) model and selects A-share listed companies from the Shanghai Stock
Exchange from 2017 to 2018 as a research sample. After eliminating the
financial listed companies and missing data samples, 725 sample companies were
used for statistical analysis. The result shows that 1) the existence of female
top management can effectively inhibit the occurrence of over-investment
behavior of the company. 2) The higher the proportion of female senior
executives, the less likely the listed company’s over-investment behavior will
occur. The research in this paper will provide new ideas for the effectiveness
of China’s listed companies to strengthen the internal governance mechanism,
provide a broader direction for the study of investment theory, and also
promote the transformation of the company’s human capital management practices.