Gender Diversity and Financial Risk

Abstract

This chapter intends to contribute to the analysis of gender diversity and financial risk through a bibliometric review of the existent literature to understand the current state of financial risk research as well as to contribute to the analysis of the influence of gender diversity on financial risk. Although there is extensive research on financial risk, no recent study tries to update the current state of the research over the influence of gender on financial risk practices. This chapter describes the evolutional research studies published in the digital library Scopus, between 2010 and June 2021, and compares the results obtained in evolutionary terms. When the research is concentrated on the bibliometric analysis in the Scopus database and the keyword “financial risk,” it leads to a total of 15,979 documents. Regarding the analysis concentrated on the keywords “gender diversity” and “financial risk” for the period between 2010 and June 2021, the authors end with a final sample of 96 documents. Proposals for further research are provided based on the current state of the art.

May intellectual capital and corporate governance reduce the probability of financial distress?

“…Several studies Ali et al (2021) and Sun et al (2022) reported that gender diversity positively affects financial performance, thereby preventing companies from bankruptcy. Studies Ali et al (2021) and Teodósio et al (2022) stated that gender diversity can prevent bankruptcy and plays a role in balancing the behaviour of men and women, ensuring stable policies, specifically regarding strategic decisions in maintaining business sustainability.…”

Risk Management Committee Gender and Likelihood of Financial Distress of Listed Deposit Money Banks in Nigeria

“…A large body of research has highlighted the effects of RMC gender diversity on the likelihood of financial distress (Chen et al, 2019;Elisa & Guido, 2020;Mittal & Lavina, 2018;Saima & Arefin, 2022b;Teodósio et al, 2022;Zhou, 2019). Mittal and Lavina (2018) empirically examined the effect of board gender diversity on financial distress using the sample of Indianlisted family firms for a period ranging from 2013 to 2016.…”

“…However, there is still limited research on gender diversity in Nigeria regarding risk management committees and the likelihood of firms' financial distress. This is worth assessing as previous studies have suggested that women and men are quite different in respect to risk taking, preference, aversion and tolerance (Elisa & Guido, 2020;Saima & Arefin, 2022;Teodósio et al, 2022;Zalata et al, 2018). Drawing on the NCCG 2018, which serves as an instrumental variable, this study addresses potential endogeneity concerns related to self-selection biases and explores the causal link between risk management committee gender and the likelihood of financial distress.…”

Does Board Diversity and Financial Ratio Predict the Risk of Financial Distress?? Evidence from Indonesia

“…This means that more women members on the risk committee make the risk committee's oversight of the risk management process more effective. Women are seen as more conscientious and conservative and tend to avoid risk [39]. Women are the right people to provide oversight to management, especially in terms of risk management.…”