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Eurasian Business Review
Published in: Eurasian Business Review 3/2020

26-10-2019 | Regular Article

Board gender diversity, competitive pressure and investment efficiency in Chinese private firms

Authors: Sultan Sikandar Mirza, Muhammad Ansar Majeed, Tanveer Ahsan

Published in: Eurasian Business Review | Issue 3/2020

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Abstract

This study investigates the impact of female directors (FDs) on investment efficiency in a competitive environment. Considering Chinese market, where corporate governance practices are weaker than other developed countries and empirical evidence regarding the role of female directors in shaping investment efficiency is absent, this study fills this gap by studying the role of the female directors in investment efficiency in a competitive environment. The results show that FDs improve the investment efficiency in the firms as they play a monitoring role, discipline the management, reduce agency problem, and improve efficient allocation of resources. The results also exhibit that FDs significantly curb the overinvestment problem. However, FDs do not play a significant role in reducing underinvestment problem. The study facilitates to understand the factors that help in efficient allocation of resources in an economy. This study can be helpful for the policymakers while devising corporate policies to promote and encourage gender diversity in higher management.
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next article Gender income gap in rural informal micro-enterprises: an unconditional quantile decomposition approach in the handloom industry

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Footnotes
1
We have followed (Gomariz and Ballesta 2014) by taking absolute values of residuals multiplied by − 1 to calculate FRQ.
 
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Metadata
Title
Board gender diversity, competitive pressure and investment efficiency in Chinese private firms
Authors
Sultan Sikandar Mirza
Muhammad Ansar Majeed
Tanveer Ahsan
Publication date
26-10-2019
Publisher
Springer International Publishing
Published in
Eurasian Business Review / Issue 3/2020
Print ISSN: 1309-4297
Electronic ISSN: 2147-4281
DOI
https://doi.org/10.1007/s40821-019-00138-5

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