TY - JOUR
T1 - Listed zombie firms and top executive gender
T2 - Evidence from an emerging market
AU - Fang, Jianchun
AU - Gozgor, Giray
AU - Lau, Chi Keung Marco
AU - Wu, Wanshan
AU - Yan, Cheng
PY - 2020/9/1
Y1 - 2020/9/1
N2 - This paper examines the implication of top executive gender on the zombie likelihood of firms listed in China's stock market. Our investigation shows that an increase in female executive percentage can significantly reduce corporate risk and zombie likelihood. This reduction in zombie likelihood is mainly achieved by the financial supervision of the female CFOs, mainly through the channels of quality improvement in information disclosure as well as in corporate governance. By contrast, loans and subsidies from local governments and financial institutions do not improve the performance of listed companies but increase zombie likelihood. Female executives' previous appointments with government agencies and financial institutions increase zombie likelihood as well. The academic background of female executives does not affect zombie likelihood. These findings provide insights into the relationship between executive gender diversity and corporate governance. We provide policy recommendations to help address the issue of zombie firms in China.
AB - This paper examines the implication of top executive gender on the zombie likelihood of firms listed in China's stock market. Our investigation shows that an increase in female executive percentage can significantly reduce corporate risk and zombie likelihood. This reduction in zombie likelihood is mainly achieved by the financial supervision of the female CFOs, mainly through the channels of quality improvement in information disclosure as well as in corporate governance. By contrast, loans and subsidies from local governments and financial institutions do not improve the performance of listed companies but increase zombie likelihood. Female executives' previous appointments with government agencies and financial institutions increase zombie likelihood as well. The academic background of female executives does not affect zombie likelihood. These findings provide insights into the relationship between executive gender diversity and corporate governance. We provide policy recommendations to help address the issue of zombie firms in China.
KW - China
KW - Corporate governance
KW - Executive gender
KW - Zombie firms
UR - http://www.scopus.com/inward/record.url?scp=85086373596&partnerID=8YFLogxK
U2 - 10.1016/j.pacfin.2020.101357
DO - 10.1016/j.pacfin.2020.101357
M3 - Article
AN - SCOPUS:85086373596
VL - 62
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
SN - 0927-538X
M1 - 101357
ER -