Journal article
Female directors on the sensitivity of investment to growth opportunities
Accounting and finance (Parkville), v 65(1), pp 713-752
Mar 2025
Abstract
Abstract This paper shows that female directors decrease the sensitivity of investment to the market misvaluation of growth opportunities. When the market misvaluation is high, such as during the COVID period, the sensitivity of investment to overall market valuation exhibits a significant drop. On the other hand, female directors increase the sensitivity of investment to alternative measures of growth not associated with market assessment. Firms with female directors achieve higher investment efficiency. Further analyses indicate that this contribution is mainly channelled through the board's advising function. Our main findings are robust to a battery of alternative explanations and robustness checks. Overall, this paper provides novel evidence that female directors contribute to capital investment decisions through their comprehensive information processing strategy.
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Details
- Title
- Female directors on the sensitivity of investment to growth opportunities
- Creators
- Wenjing Ouyang (Corresponding Author) - University of the PacificSamuel H. Szewczyk - Drexel UniversityJeffrey Miles - University of the Pacific
- Publication Details
- Accounting and finance (Parkville), v 65(1), pp 713-752
- Publisher
- Wiley
- Number of pages
- 40
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:001331922100001
- Scopus ID
- 2-s2.0-86000764970
- Other Identifier
- 991021930433804721
InCites Highlights
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance