I find that firms led by female top executives hold more cash, partly due to precautionary motives. To overcome endogeneity concerns, I employ several econometric techniques, including an instrumental variable analysis based on a historical event that resulted in a plausibly exogenous variation in the female workforce participation. Overall, my results are consistent with the view that greater risk-aversion leads female executives to hold more cash.
Adhikari, Binay K. 2017. “Female Executives and Corporate Cash Holdings.” Applied Economics Letters 25 (13): 958–63. https://doi.org/10.1080/13504851.2017.1388904.
Applied Economics Letters