The Impact of Female Director on CEO Turnover and Corporate Performance

Abstract

This paper uses panel data from 2005 to 2018 year of Shanghai and Shenzhen A-share listed companies to observe the impact of the company's employment of female directors on CEO changes and company performance. The results show that:if a listed company hires Female director, the frequency of CEO changes increases significantly; and the higher the percentage of female directors, the greater the likelihood of CEO changes. This result is consistent with the hypothesis that female directors strengthen enthusiasm for board supervision. On the other hand, the results show that for all companies, companies with female director’s performance is significantly lower than those without female directors; and there is no significant correlation between the female directors ratio and the company's financial performance. Therefore, indicating that the appointment of female directors by listed companies in China may be due to "symbolisms" needs, rather than based on the female director’s personal characteristics or their abilities.