Women in leadership: impact on liquidity risk and returns in the Chilean stock market
DOI:
https://doi.org/10.36097/rsan.v1i64.3668Keywords:
Diversidad de género, Gobernanza corporativa, Riesgo de liquidez, Volatilidad del retorno bursátil, ChileAbstract
This study analyzes the relationship between liquidity risk and stock return volatility, focusing on the influence of female participation on boards of directors and in senior management. The sample includes 69 large Chilean companies listed on the Santiago Stock Exchange between January 2020 and March 2023. Using panel data methodology and five multidimensional indicators of liquidity risk (Relative Quoted Spread, Coefficient of Elasticity of Trading, Share Turnover, Amihud Illiquidity, and Market Efficiency Coefficient), the results show that female representation on boards of directors is significantly associated with reduced liquidity costs and greater market efficiency. In contrast, women in executive roles are linked to higher stock return volatility, suggesting differentiated approaches to risk management. These findings highlight the strategic relevance of gender diversity in corporate governance, providing evidence that inclusive leadership can strengthen market performance and investor confidence in emerging economies.
Downloads
References
Abidi, I., & Nsaibi, M. (2022). Does Gender Diversity on Boards Influence Stock Market Liquidity? Empirical Evidence from the Tunisian Market. International Journal of Economics and Financial Issues, 12(3):110-20. https://doi.org/10.32479/ijefi.13051
Ahmed, A., & Ali, S. (2017). Boardroom gender diversity and stock liquidity: Evidence from Australia. Journal of Contemporary Accounting & Economics, 13(2), 148-165. https://doi.org/10.1016/j.jcae.2017.06.001.
Ali, S., Zhongxin, W., Ali, Z., Usman, M., & Zhuoping, Y. (2022). Does financial transparency substitute corporate governance to improve stock liquidity? Evidence from emerging market of Pakistan. Frontiers in psychology, 13, 1003081. https://doi.org/10.3389/fpsyg.2022.1003081.
Amihud, Y. (2002). Illiquidity and stock returns: cross-section and time-series effects. Journal of financial markets, 5(1), 31-56. https://doi.org/10.1016/S1386-4181(01)00024-6
Arenas-Torres, F., Bustamante-Ubilla, M., & Campos-Troncoso, R. (2021). Diversity of the Board of Directors and Financial Performance of the Firms. Sustainability, 13(21), 11687. https://doi.org/10.3390/su132111687.
Arévalo-Alegría, M., Acuña-Duarte, A. A., & King-Domínguez, A. (2020). Composición del consejo de administración y desempeño financiero en mercados emergentes de América Latina: evidencia para Brasil, Chile y México. Estudios gerenciales, 36(156), 272-287. https://doi.org/10.18046/j.estger.2020.156.3739.
Bravata, D. M., Watts, S. A., Keefer, A. L., Madhusudhan, D. K., Taylor, K. T., Clark, D. M., ... & Hagg, H. K. (2020). Prevalence, predictors, and treatment of impostor syndrome: a systematic review. Journal of general internal medicine, 35(4), 1252-1275. https://doi.org/10.1007/s11606-019-05364-1.
Gonzales_Bustos, J. P. (2022). La equidad de género en el consejo de administración de las sociedades cotizadas¿ Autorregulación o intervencionismo administrativo?. Ius et Praxis, 28(3), 85-110. https://doi.org/10.4067/S0718-00122022000300085.
Gros Grosser, K., McCarthy, L., & Kilgour, M. A. (Eds.). (2017). Gender equality and responsible business: Expanding CSR horizons. Routledge.
Gull, A. A., Abid, A., Nguyen, D. K., Usman, M., & Mushtaq, R. (2024). Stock price crash and information environment: Do CEO gender and financial expertise matter?. Review of Quantitative Finance and Accounting, 1-37. https://doi.org/10.1007/s11156-024-01244-w.
Haro-Sarango, A., & Naranjo-Cedeño, N. M. (2021). Decisiones financieras y desempeño organizacional: la influencia de la mujer en la generación de valor. Revista Minerva, 43-55. https://doi.org/10.5377/revminerva.v4i2.12393.
Ibarra, H., Ely, R., & Kolb, D. (2013). Women rising: The unseen barriers. Harvard business review, 91(9), 60-66. https://hbr.org/2013/09/women-rising-the-unseen-barriers?referral=03759&cm_vc=rr_item_page.bottom
Inostroza, M. A., Sepúlveda Velásquez, J., & Ortúzar, S. (2023). Gender and decision-making styles in male and female managers of Chilean SMEs. Academia Revista Latinoamericana de Administración, 36(3), 289-334. https://doi.org/10.1108/ARLA-05-2022-0115.
Khan, J., Rehman, S. U., & Khan, I. (2023). Impact of board attributes on stock liquidity: evidence from Pakistani panel data. Journal of Accounting in Emerging Economies, 13(1), 118-134. https://doi.org/10.1108/JAEE-06-2021-0207.
Li, Z., Cotton, D., Walsh, K., & Xu, J. (2024). Does board gender diversity improve stock liquidity?. Journal of Accounting Literature. https://doi.org/10.1108/JAL-06-2024-0109.
Loukil, N., Yousfi, O., & Yerbanga, R. (2019). Does gender diversity on boards influence stock market liquidity? Empirical evidence from the French market. Corporate Governance: The International Journal of Business in Society, 19(4), 669-703. https://doi.org/10.1108/CG-09-2018-0291.
Mastella, M., Vancin, D., Perlin, M., & Kirch, G. (2021). Board gender diversity: performance and risk of Brazilian firms. Gender in Management: An International Journal, 36(4), 498-518. https://doi.org/10.1108/GM-06-2019-0088.
M Maxfield, S., & Wang, L. (2024). Board gender diversity, firm risk, and the intermediate mechanisms: a meta‐analysis. Corporate Governance: An International Review, 32(6), 934-953.https://doi.org/10.1111/corg.12572.
Ministerio de la Mujer y la Equidad de Género & Fundación ChileMujeres. (2021). Segundo reporte de indicadores de género en las empresas en Chile 2020 (2.ª ed.). https://www.chilemujeres.cl/wp-content/uploads/2023/03/REPORTE-INDICADORES-DE-GENERO-EN-LAS-EMPRESAS-EN-CHILE-2020.pdf
Ministerio de la Mujer y la Equidad de Género & Fundación ChileMujeres. (2022). Tercer reporte de indicadores de género en las empresas en Chile 2021 (3.ª ed.). https://www.chilemujeres.cl/wp-content/uploads/2023/03/REPORTE-INDICADORES-DE-GENERO-EN-LAS-EMPRESAS-EN-CHILE-2021.pdf
Ministerio de la Mujer y la Equidad de Género, Ministerio de Hacienda & Fundación ChileMujeres. (2023). Cuarto reporte de indicadores de género en las empresas en Chile 2022 (4.ª ed.). https://www.chilemujeres.cl/wp-content/uploads/2023/03/4o-REPORTE-INDICADORES-DE-GENERO-EN-EMPRESAS-EN-CHILE.pdf
Ministerio de Hacienda & Fundación ChileMujeres. (2024). Quinto reporte de indicadores de género en las empresas en Chile 2023 (5.ª ed.). https://www.chilemujeres.cl/wp-content/uploads/2024/03/ORIGINAL_QUINTO_REPORTE_INDICADORES_GENERO_2023_1_PAGINA_DIGITAL.pdf
Monga, R., Aggrawal, D., & Singh, J. (2023). Assessment of stock market liquidity and efficiency: Evidence from an emerging country. Organizations and Markets in Emerging Economies, 14(1 (27)), 6-25. https://doi.org/10.15388/omee.2023.14.80.
Nguyen, H. T., & Muniandy, B. (2021). Gender, ethnicity and stock liquidity: evidence from South Africa. Accounting & Finance, 61, 2337-2377. https://doi.org/10.1111/acfi.12668.
Quiroz-Rojas, P., & Teruel, M. (2021). Does gender matter for innovative and non-innovative firms’ growth? An empirical analysis of Chilean managers. Innovation and Development, 11(1), 49-67. https://doi.org/10.1080/2157930X.2020.1748329.
Sakulku, J. (2011). The impostor phenomenon. The Journal of Behavioral Science, 6(1), 75-97. https://thementalhealthtoolbox.com/wp-content/uploads/2022/03/Sakulku.2011.The-impostor-phenomenon.pdf.
Sarang, A. A. A., Aubert, N., & Hollandts, X. (2024). Board gender diversity and the cost of equity: What difference does gender quota legislation make?. International Journal of Finance & Economics, 29(2), 2193-2213. https://doi.org/10.1002/ijfe.2774.
Sehrish, S., Naeem, M. A., Karim, S., & Yarovaya, L. (2024). Gender and mutual fund liquidity. British Journal of Management, 35(2), 729-749. https://doi.org/10.1111/1467-8551.12727.
Shahrour, M. H., Lemand, R., & Wojewodzki, M. (2024). Board diversity, female executives and stock liquidity: evidence from opposing cycles in the USA. Review of Accounting and Finance, 23(5), 581-597. https://doi.org/10.1108/RAF-01-2024-0014.
Sonza, I. B., & Valcanover, V. M. (2019). Can gender diversity influence liquidity and risk of companies?. Base Revista de Administração e Contabilidade da UNISINOS, 16(4), 614-638. https://www.redalyc.org/journal/3372/337260392006/.
Tashfeen, R., Saleem, I., Ashfaq, M., Noreen, U., & Shafiq, M. (2023). How do women on board reduce a firm’s risks to ensure sustainable performance during a crisis?. Sustainability, 15(14), 11145. https://doi.org/10.3390/su151411145.
Terjesen, S., Aguilera, R. V., & Lorenz, R. (2015). Legislating a woman’s seat on the board: Institutional factors driving gender quotas for boards of directors. Journal of business ethics, 128(2), 233-251. https://doi.org/10.1007/s10551-014-2083-1.
Ye, J., Zhang, H., Cao, C., Wei, F., & Namunyak, M. (2021). Boardroom gender diversity on stock liquidity: empirical evidence from Chinese A-share market. Emerging Markets Finance and Trade, 57(11), 3236-3253. https://doi.org/10.1080/1540496X.2019.1684892.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Francisco Vasquez, Prosper Lamothe-Fernández, Hernan Marcelo Pape-Larre
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
