Effect of gender diversification in the management of banks on the risk-taking behavior of banks

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2020-08-28

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en

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Motivated by the gender diversification discussion, regulation of the European Banking Authority, and the recent publication of the European Banking Authority, this thesis investigates the effect of gender diversification of the bank board on the bank risk. This thesis has three contributions to the existing literature. First, adding empirical evidence to the literature by investigating the effect of gender diversification in the management board of banks on the risk-taking of banks. Second, it obtains the information from the banks in the European Union after the financial crisis. Third, using four different risk measures. The main risk measure that is used is the Z-Score. The dataset consists of 137 banks from 27 countries of the European Union. A fixed-effects model is regressed and to control for the dynamic endogeneity problem, a lagged fixed effects model and an Arellano-Bond estimation are regressed. The expectation was that the percentage female on the bank board negatively affected the bank risk. Based on the fixed-effects and lagged fixed-effects model, the conclusion is that gender diversification has a negative effect on bank risk. But, based on the Arellano Bond estimation gender diversification has a positive effect on bank risk.

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Faculteit der Managementwetenschappen

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