The Role of Female Directors’ Influence on Investment Efficiency Under Cost Stickiness: Evidence From Korean Firms

This study explores the impact of female directors on the investment efficiency of Korean firms, especially under conditions of cost stickiness. Using data from firms listed on the Korean Stock Exchange between 2014 and 2021, regression is employed to determine the relationship between female board representation and investment efficiency. The results show that female directors do not significantly affect investment efficiency under typical economic conditions, but their influence becomes more pronounced during periods of cost stickiness. In these circumstances, the presence of female directors is associated with enhanced investment efficiency, suggesting that they promote more disciplined financial strategies under economic stress. These findings advance the understanding of gender diversity in corporate governance, highlighting the conditions under which female directors are most effective. The study also offers valuable insights for policymakers and investors, underscoring the strategic importance of gender diversity on corporate boards in enhancing firm performance during challenging economic times.