1 / 15

Banks ’ board and risk-taking : does gender diversity matter ?

Banks ’ board and risk-taking : does gender diversity matter ?. Giuliana Birindelli, University of Chieti-Pescara Helen Chiappini, University of Chieti-Pescara Marco Savioli, University of Salento, RCEA. 60ª RSA - Università di Palermo - 24-26 ottobre.

rosaline
Télécharger la présentation

Banks ’ board and risk-taking : does gender diversity matter ?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Banks’ board and risk-taking: does gender diversitymatter? Giuliana Birindelli, University of Chieti-Pescara Helen Chiappini, University of Chieti-Pescara Marco Savioli, University of Salento, RCEA 60ª RSA - Università di Palermo - 24-26 ottobre

  2. BACKGROUND AND RATIONALITY OF THE ANALYSIS • The global financialcrisishasresulted in: • the strengthening of corporate governancemechanisms(De LaroisièrCommittee 2009; Basel Committee on Banking Supervision 2010) • the implementation of diversifiedboards, atleast in terms of age, professionalexperience and gender (European Directive 2013/36/EU). • Manygovernmentshavemeanwhileestablishedgender quotasby law over the last years (e.g. Norway, Spain, France, and Italy). • Theseeventshavebeenaccompanied by a strong academicdebateon the impact of gender diversity on firmrisk. • Board diversity: • Pros: diversitybrings a variety of backgrounds, skills and perspectives to the boardroom, thereforedirectors and companies may benefit from these diverse social and occupationalexperiences (Anderson, Reeb, Upadhyay, & Zhao 2011). • Cons: the cost of diversity – in terms of communication, coordination and conflictamongdirectors with different backgrounds - exceedsits benefits (Putnam 2007). Banks’ board and risk-taking: does gender diversitymatter?

  3. LITERATURE REVIEW (1/2) • Fewstudies on effects of diversity in the banking sector • Thosestudies (generally) focus on a specific country • Results are mixed • Non-linear relationshipbetween gender and riskisunderinvestigatedlike the impact of gender diversity on differentlevels of bank’srisk Table 2: Gender and banks risk-taking Table 1: Gender and corporates risk taking Banks’ board and risk-taking: does gender diversitymatter?

  4. LITERATURE REVIEW (2/2) Table 3: Gender and banks risk-taking Banks’ board and risk-taking: does gender diversitymatter?

  5. AIM AND HYPOTHESES DEVELOPMENT Aim The aim of thisresearchis to investigate the relationshipbetween gender diversity and banks’ risktaking. Focus: Riskless and riskerbanks Non linear relationshipbetween gender diversity and risk Twohypotheses: H01: The relationshipbetween gender diversity and riskisaffected by the level of risk H02: Thereis a non linear relationshipbetween gender diversity and risk Banks’ board and risk-taking: does gender diversitymatter?

  6. DATA AND METHOD (1/2) • Wecollect data on listedbanks from 40 countries over the years 2008 -2016. • Data on riskmeasures, boards and bankscharacteristics are from Thomson Reuters Datastream. • Data on Grossdomesticproducts per capita (GDP) are from World Bank. • Fourmeasures of risks: • Common equity ratio • Tier1 on totalassets • NPLs ratio • Price volatility • Gender diversityvariables: • Femaledirectors • Massa women • Womensq • We use Panel FixedEffectEstimation Banks’ board and risk-taking: does gender diversitymatter?

  7. DATA AND METHOD (2/2) Table 4: Descriptivestatistics Banks’ board and risk-taking: does gender diversitymatter?

  8. MAIN FINDINGS (1/5) Table 5: Gender and banks risk-taking Banks’ board and risk-taking: does gender diversitymatter?

  9. MAIN FINDINGS (2/5) Table 6: Gender and banks risk-taking by level of risk Banks’ board and risk-taking: does gender diversitymatter?

  10. MAIN FINDINGS (3/5) Table 7: Critical mass and banks risk-taking by level of risk Banks’ board and risk-taking: does gender diversitymatter?

  11. MAIN FINDINGS (4/5) Table 8: Female sq and banks risk-taking by level of risk Banks’ board and risk-taking: does gender diversitymatter?

  12. MAIN RESULTS (5/5) Figure 1: Gender diversity and Common equity ratio: U-shaperelationship Beyond a threshold of 34% appointing a womenmayincreasebank’srisk or risklessbanks Banks’ board and risk-taking: does gender diversitymatter?

  13. ROBUSTNESS CHECK Table 9: Robustnesscheck with GMM Banks’ board and risk-taking: does gender diversitymatter?

  14. DISCUSSION AND CONCLUSION • Ourpreliminaryresultsconfirmedthat the relationshipbetween gender diversity and riskis non-linear and has an inverted U-shape. • Thesefindings are significant for banksshowingrisk under the median. Thus, beyond a certainlevel of risk gender diversitybecameinsignificant in terms of risk. • Future improvements: • Inclusion of otherrobustnesschecks • Policy implications of gender diversity: mixedresults of gender quotas • Future researchcouldimprove the analysis in terms of gender quotas. Studied are currentlyfocused on performance of firms and are country-specific. Banks’ board and risk-taking: does gender diversitymatter?

  15. Thankyou for yourattention! For comments and suggestions: marco.savioli@unisalento.it Banks’ board and risk-taking: does gender diversitymatter?

More Related