Whether Female Executives Inhibit the Overinvestment of Political Connected Enterprises? -- Evidence from Chinese Listed Family Firms
Human Resources Development of China 2016-7
Abstract：Political connections and female executives are two pervasive phenomena that exist in the private enterprises. About their impacts on the overinvestment of the private enterprises, most of previous researches only consider their impacts distinctively. For the first time, this paper links the two typical phenomena conjunctly, selects listed family firms as the representative samples to the private enterprise, based on the data of family firms in Shanghai and Shenzhen A shares private listed companies in the CSMAR database from 2003 to 2013, and tests whether female executives inhibit the overinvestment of political-connected enterprises. It reaches the conclusions as follows: firstly, political connections will have a positive impact on the overinvestment of the listed family firms; secondly, female executives will have a negative impact; thirdly, if we consider the two phenomena together, we will find that female executives will inhibit the overinvestment of political-connected enterprises. Those findings not only enriched the theoretical knowledge about the two phenomena, but also provide instructive revelation about seeking political relevance and balancing the executive ratio for family firms.
Keywords：Overinvestment, Listed Family Firms, Political Connections, Female Executives