The relationship between the acquisition of corporate credit and the gender of executives: Evidence from developing countries

• Published in: Finance research letters 2024-04, Vol.62, p.105169, Article 105169
• Main Authors: Zhao, Xing, Li, Xiangqian, He, Zhuoyi, Shi, Ruoying
• Format: Article
• Language: English
• Subjects: Corporate credit; Corporate governance; Gender of executives
• ISSN: 1544-6123; 1544-6131
• DOI: 10.1016/j.frl.2024.105169

•We examine the effects of gender diversity on financial decision-making.•The above effect is positive and varies across industry and region.•This study provides policy implicationns for gender selection at the firm-level. This study examines business credit access and the gender of company executives in developing countries from 2000 to 2022. We use static equations and dynamic modeling approaches to address these phenomena. Our investigation indicated a correlation between the gender of company executives and corporate credit; this relationship varies in diverse firms and regions in developing countries. Additionally, the effect of executive gender on the credit supply chain of the firm varies over time, indicating time variations in corporate governance and financing channels. This study also shows that increased gender inclusivity in addressing the composition of corporate leadership can help businesses obtain financing in the developing world. This approach could also enhance the financial performance and sustainability of these organizations on a long-term basis. Embarking on a policy of nurturing gender leadership practices can ensure the economy's growth and development in developing regions.