Corporate board gender diversity and asset liquidity

Abstract

Board gender diversity has gained significant attention in recent decades. In this paper, we explore the impact of board gender diversity on firms’ asset liquidity decisions and find a negative but non-linear association between these two. Furthermore, our quantile analysis reveals heterogeneous effects across different points of asset liquidity. Additionally, our results remain robust when we conduct a set of econometric specifications, including moderating analysis (e.g., working capital strategies, performance, and macro effects), propensity score matching, instrumental variable analysis, alternative diversity measures, and GMM technique. Overall, our study provides valuable insights into the considerable influence female directors can have on corporate decision-making and contributes to the emerging literature on the role and importance of women in leadership positions.