Abstract
This paper examines whether banks with female Chief Executive Officers (CEOs) and chairpersons of the board are associated with better lending performance and lower default risk when faced with severe real estate price shocks. Using a large panel of U.S. commercial banks, we document that female-led banks with high real estate exposure are associated with lower loan charge-offs and lower non-accrual loans relative to similar male-led banks. Furthermore, our empirical findings indicate that female-led banks with high real estate exposure have lower default risk and are less likely to fail in the aftermath of real estate price shocks. However, we find no evidence of superior lending performance or reduced default risk for female-led banks which are not exposed to severe real estate price shocks through high levels of real estate lending.
Original language | English |
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Peer-reviewed scientific journal | Journal of Business Research |
Volume | 117 |
Pages (from-to) | 897-909 |
Number of pages | 13 |
ISSN | 0148-2963 |
DOIs | |
Publication status | Published - 14.05.2020 |
MoE publication type | A1 Journal article - refereed |
Keywords
- 512 Business and Management
- female CEOs
- chairwomen
- lending performance
- loan losses
- default risk
- bank failures