Gender diversity and bank misconduct
نویسندگان
چکیده
This paper investigates whether gender-diverse bank boards can play a role in preventing costly misconduct episodes. We exploit the fines received by European banks from US regulators to reduce endogeneity issues related supervisory and governance mechanisms. show that greater female representation significantly reduces frequency of fines, equivalent savings $7.48 million per year. Female directors are more influential when they reach critical mass supported women leadership roles. The mechanism through which gender diversity affects board effectiveness stems ethicality risk aversion directors, rather than their contribution diversity. findings robust alternative model specifications, proxies for diversity, reverse causality, country controls, sub-sample analyses. • fines. impact is if misconduct-reducing effect appears aversion,
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ژورنال
عنوان ژورنال: Journal of Corporate Finance
سال: 2021
ISSN: ['0929-1199', '1872-6313']
DOI: https://doi.org/10.1016/j.jcorpfin.2020.101834