The relationship between female workforce participation and corporate bond credit ratings
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Received August 20, 2020;Accepted October 26, 2020;Published October 30, 2020
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DOIhttp://dx.doi.org/10.21511/imfi.17(4).2020.04
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Article InfoVolume 17 2020, Issue #4, pp. 33-43
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Cited by1 articlesJournal title: Global Finance JournalArticle title: Firms' gender composition, loan collateral, and sustainable financeDOI: 10.1016/j.gfj.2024.101051Volume: 63 / Issue: / First page: 101051 / Year: 2024Contributors: Rudresh Pandey, Xian He, Dengjun Zhang
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The topic of gender diversity in the workforce has received an increasing amount of attention and even resulted in developing a new term, sheconomy, which describes an economy in which women are the main economic players. This study examines the relationship between female workforce participation and corporate bond credit ratings. Using an ordered logit regression model and a sample of listed companies on the Korea Exchange, the results show that the higher the number and proportion of women in the workforce (based on female directors and female employees), the higher the credit rating. However, for chaebol companies, where female directors’ positive role is limited by chaebol owners, a negative (–) moderating effect is observed in the relationship between female workforce participation and credit ratings. Besides, female directors who are members of the owner’s family and were appointed as a means of succession negatively affect a company’s value. The findings contribute to accounting and finance research on the relationship between governance and credit ratings in terms of gender diversity. Policy implications regarding the recent system changes in Korea, including introducing a gender quota system, can be derived from the study.
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JEL Classification (Paper profile tab)G30, G38, M41
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References24
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Tables6
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Figures0
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- Table 1. Effect of female directors on corporate bond credit ratings (H1a)
- Table 2. Effect of female employees on corporate credit ratings (H1b)
- Table 3. Additional review of the effect of female employees on corporate credit ratings
- Table 4. Moderating effect of chaebol enterprises in the relationship between female directors and credit ratings (H2)
- Table 5. Differences in credit ratings based on the ratio of family relationships in firms with female directors
- Table 6. The moderating effects of family relationships on the relationship between female directors and credit ratings (chaebol vs. non-chaebol)
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Gender diversity and organizational performance: a study of IT industries in Bangalore
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Gender diversity and sustainability responsiveness: evidence from Nigerian fixed money deposit banks
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Impact of the board of directors’ characteristics on firm performance: A case of Bahraini listed firms
Problems and Perspectives in Management Volume 21, 2023 Issue #1 pp. 291-301 Views: 1203 Downloads: 321 TO CITE АНОТАЦІЯThis study aims to examine the impact of the characteristics of the board of directors (BOD), namely board independence, board size, frequency of board meetings, and board gender diversity, on firm performance. This quantitative study uses data from all firms listed in the Bahrain Bourse for 2019 and 2020. Data on BODs were taken from the companies’ governance reports, while data on firm performance, namely return on assets (ROA), return on equity (ROE), and earnings per share (EPS), were taken from annual reports. Based on the ordinary least squares (OLS) approach, the results show insignificant relationships between BOD characteristics and firm performance. Board independence, size, frequency of meetings, and gender diversity insignificantly enhance Bahraini firms’ performance. The results indicate that firms may need to effectively implement BOD mechanisms. Moreover, other factors may moderate the impact of BOD mechanisms on firm performance. Hence, the study suggests a need for more regulations and policies to increase the effectiveness of board members. This study alerts policymakers, firms’ shareholders and stakeholders, and researchers to the need to increase directors’ roles in boosting company performance, especially in developing countries, where it is complicated to force business to follow best governance practices.