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The B.E. Journal of Economic Analysis & Policy

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She-E-Os and the Cost of Debt: Do Female CEOs Pay Less for Credit?

Muhammad Usman / Muhammad Umar Farooq / Junrui Zhang / Muhammad Abdul Majid Makki / Junqin Sun
Published Online: 2018-09-25 | DOI: https://doi.org/10.1515/bejeap-2018-0177


Does the CEO’s gender matter to lenders? Using data from 2006 to 2015 for listed companies in China, we find reliable evidence that lenders charge firms led by female CEOs (She-E-Os) less for debt than they do from firms led by male. In addition, we find that the leadership structure of state-owned enterprises (SOEs) also matters to lenders because SOEs with female CEOs have lower cost of debt than do those with male CEOs. Our findings remain consistent after controlling for endogeneity issue.

Keywords: CEO gender; cost of debt; creditors; government ownership

JEL Classification: J16; O16


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About the article

Published Online: 2018-09-25

This work was supported by the National Natural Science Foundation of China, Grant Number: 71472148

Citation Information: The B.E. Journal of Economic Analysis & Policy, 20180177, ISSN (Online) 1935-1682, DOI: https://doi.org/10.1515/bejeap-2018-0177.

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