Nexus between geopolitical risk, female CEOs and firm performance relationship: an international evidence

Purpose The purpose of this study is to examine the nexus between geopolitical risk, female CEOs and firm performance through a cross-country analysis. Design/methodology/approach The study period ranges from 2014 to 2021, and the dataset uses an unbalanced panel of 4,955 companies across 50 nations comprising both developed and emerging economies. Our study has employed a fixed-effect panel regression model, to examine this issue. This analysis was supplemented with applying a dynamic panel technique, i.e. System generalized method of moments (SGMM), to address any endogeneity problems. Findings The study reveals that female CEOs positively impact firm performance, while geopolitical risks decrease it. Gender plays a significant role in this relationship, with firms with female executives tending to make conservative financial decisions amidst increased risks. The study also shows that geopolitical threats (GPRT) have a greater impact on female CEOs-firm performance relationship in developed nations. Originality/value This study is a new investigation that explores the intertwining relationship between geopolitical risk, female CEOs and firm performance across the countries.

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Institutions

Publication Details

Journal
Managerial Finance
Published
2024-08-29
DOI
https://doi.org/10.1108/mf-05-2024-0353
Citations
6
Primary Topic
Corporate Finance and Governance
Type
article
Field-Weighted Citation Impact
5.68
Controls
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article

Nexus between geopolitical risk, female CEOs and firm performance relationship: an international evidence

Jitendra Mahakud, Siddhartha Barman
6 citations
Managerial Finance
Corporate Finance and Governance
5.68
article

Nexus between geopolitical risk, female CEOs and firm performance relationship: an international evidence

Jitendra Mahakud, Siddhartha Barman
article en
6 citations

Abstract

Purpose The purpose of this study is to examine the nexus between geopolitical risk, female CEOs and firm performance through a cross-country analysis. Design/methodology/approach The study period ranges from 2014 to 2021, and the dataset uses an unbalanced panel of 4,955 companies across 50 nations comprising both developed and emerging economies. Our study has employed a fixed-effect panel regression model, to examine this issue. This analysis was supplemented with applying a dynamic panel technique, i.e. System generalized method of moments (SGMM), to address any endogeneity problems. Findings The study reveals that female CEOs positively impact firm performance, while geopolitical risks decrease it. Gender plays a significant role in this relationship, with firms with female executives tending to make conservative financial decisions amidst increased risks. The study also shows that geopolitical threats (GPRT) have a greater impact on female CEOs-firm performance relationship in developed nations. Originality/value This study is a new investigation that explores the intertwining relationship between geopolitical risk, female CEOs and firm performance across the countries.

Managerial FinanceVol. 51(1)
Indian Institute of Technology Kharagpur (IN)
Openalex Percentile: Top 4%
Corporate Finance and Governance
5.68
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