The impact of the senior female official on the financial performance of listed firms in China.

Abstract

This paper examine the relationship between senior female official and corporate financial performances in China. We collect female senior officials of provinces, the executives and financial data of listed firms from 2013 to 2017 .This paper find that the number of female senior officials have less effect on financial performance. There are only relationship with few financial indicators. Overall, the number of female senior officials is negatively related to the return on assets. This is a disadvantage to profit growth and expansion of firms . For non-state-owned enterprises, it is more advantage to promote market capitalization. On the other hand, executives with political background is positively impact to current ratio and market capitalization. The number of female officials has no significant impact on the financial performance of the company whether in economically developed and backward areas. However, the increasing in number of female senior officials could disrupt positively political influence and reducing the impact of political connections on corporate financial performance.