Journal of Financial Economics2013-09-05 2:57 AM

Gender and corporate finance: Are male executives overconfident relative to female executives?

Abstract We examine corporate financial and investment decisions made by female executives compared with male executives. Male executives undertake more acquisitions and issue debt more often than female executives. Further, acquisitions made by firms with male executives have announcement returns approximately 2% lower than those made by female executive firms, and debt issues also have lower announcement returns for firms with male executives. Female executives place wider bounds on earnings estimates and are more likely to exercise stock options early. This evidence suggests men exhibit relative overconfidence in significant corporate decision making compared with women.

KEYWORDS

SHARE & LIKE

COMMENTS

ABOUT THE AUTHOR

Journal of Financial Economics

The Journal of Financial Economics or JFE is a peer-reviewed academic journal covering theoretical and empirical topics in financial economics. Together with the Journal of Finance and the Review of Financial Studies, it is considered to be among the top three finance journals.

0 Following 15 Fans 0 Projects 104 Articles

SIMILAR ARTICLES

Abstract We provide evidence that incumbent and entrant firms' access to business group deep pockets affects the entry patterns in product markets. Re

Read More

Abstract This paper explores the implications of filtering and no-arbitrage for the maximum likelihood estimates of the entire conditional distributio

Read More

Abstract This paper considers the term structure of interest rates implied by a production-based asset pricing model in which the fundamental drivers

Read More

Abstract How do differences of opinion affect asset prices? Do investors earn a risk premium when disagreement arises in the market? Despite their fund

Read More

Abstract We examine whether access to management at broker-hosted investor conferences leads to more informative research by analysts. We find analyst

Read More

Abstract The literature on distressed firms has focused on these firms’ investment, capital structure, and labor decisions. This paper investigates a n

Read More

Abstract We find a negative relationship between bank distress and the level, quality and trajectory of firm-level innovation during the Great Depressi

Read More

Abstract We investigate a prominent allegation in congressional hearings that Moody׳s loosened its rating standards to chase revenue after it went publ

Read More

Abstract: We exploit the deregulation of interstate bank branching laws to test whether banking competition affects innovation. We find robust evi

Read More

Abstract We use industry valuation differentials across European countries to study the impact of membership in the European Union as well as the Euro

Read More