Diversity in boardroom and debt financing: A case from China

Abstract

The study aims to explore the role of gender diversity in debt financing choices among Chinese listed firms. The study used the Chinese listed firm's data from 1991 to 2022 from the Chinese Stock Market return. The study used the fixed effect regression analysis and revealed that gender diversity positively affects debt financing among Chinese firms. Additionally, mass theory results suggested that at least three females on the board significantly influence firms. It served as the voice of gender diversity to influence the board's decisions regarding debt financing. The study has several theoretical and practical implications. This study will enlighten the Chinese boardroom dynamics by reassuring them to add more females to diversity policies. It will benefit future studies on boardroom activities and debt financing in emerging economies. It will be practical guidance for the Chinese policymakers, governing authorities, and corporate executives. The study stresses the need for significant diversity on the board rather than one female presence on the board. Secondly, this study contradicts the stereotype perception that females are not making risky decisions.

Government innovation subsidy, executives’ academic capital and innovation quality: Evidence from pharmaceutical companies in China

“…This approach can be accompanied by significant market risk. In reaction to hostile takeovers, financial analysis tracking, and stock liquidity demands in the capital markets, corporate executives of listed enterprises prioritize short-term objectives ( Sun et al, 2022 ) and reduce their investment in long-term innovation projects. Academic executives ( Terpstra and Rozell, 1998 ), on the other hand, are more concentrated on technological innovation, have a profound understanding of innovation’s significance ( Clements and Izan, 2008 ), and are more inclined to utilize innovation funds received by their companies in innovation activities ( Finkelstein and Hambrick, 1990 ).…”

The “heterogeneous” effect of government grants on bank lending

“…The government typically offers underperforming businesses "helping hands" to keep them from being delisted to maintain local GDP and a consistent employment rate. According to one study [ 32 ], authors find that governments may use subsidies to intervene in the market and achieve a specific employment rate. Numerous studies show that government favours subsiding underprivileged businesses [ 13 ].…”