The influence of board gender diversity on risk-taking incentives: A specification curve analysis
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2023-07-13
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en
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The paper examines the relation between gender-diversity and risk-taking incentives, which is among the most debated subjects in recent literature. During the last decade, several imposed laws increase the number of women on boards around the world. However, recent literature raises the question whether women are as risk-averse as previously assumed. Since most research only focuses on a limited number of model specification, including robustness checks, the subject has never been tested against a specification curve analysis. This thesis conducts a Specification Curve analysis, which decreases arbitrary decision paths and specification noise. The findings are presented in a descriptive specification curve. Although arbitrary decision making cannot completely be eliminated, it is better than just interpreting a limited number of model specifications. The dataset consists of 8,448 model specifications. The findings show 3,012 significant positive relations and 126 significant negative relations. The results indicate that the decision path, which is least arbitrary includes all control variables, a sample period from 2000 to 2014, and a firm and year-fixed effects. Finally, the researcher’s preference decides whether to use winsorization or truncation to treat outliers, because the influence is nihil. Also, the influence of including or excluding rows with missing values is nihil.
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Faculteit der Managementwetenschappen