scholarly journals Does board gender diversity weaken or strengthen executive risk-taking incentives?

PLoS ONE ◽  
2021 ◽  
Vol 16 (10) ◽  
pp. e0258163
Author(s):  
Pattanaporn Chatjuthamard ◽  
Pornsit Jiraporn ◽  
Sang Mook Lee
Keyword(s):  
Risk Aversion ◽  
Risk Taking ◽  
Instrumental Variable ◽  
Gender Diversity ◽  
Optimal Level ◽  
Instrumental Variable Analysis ◽  
Female Directors ◽  
Managerial Risk ◽  
Board Gender Diversity ◽  
Variable Analysis

We investigate the effect of board gender diversity on managerial risk-taking incentives. Our results demonstrate that companies with stronger board gender diversity provide more powerful executive risk-taking incentives. It appears that female directors’ risk aversion exacerbates managers’ risk aversion, resulting in a sub-optimal level of risk-taking. To offset this tendency for too little risk, companies are induced to provide stronger risk-taking incentives. Specifically, an increase in board gender diversity by one standard deviation raises vega by 10.3%. Further analysis corroborates the results, including propensity score matching, entropy balancing, and an instrumental-variable analysis. Endogeneity appears to be unlikely, suggesting that female directors are not merely associated with, but probably bring about stronger risk-taking incentives.

Board gender diversity and the timing of CEO stock option awards

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moncef Guizani ◽  
Ahdi Noomen Ajmi
Keyword(s):  
Stock Price ◽  
Gender Diversity ◽  
Chief Executive ◽  
Stock Option ◽  
Content Type ◽  
Instrumental Variable Analysis ◽  
Compensation Committee ◽  
Female Directors ◽  
Research Findings ◽  
Board Gender Diversity

Purpose This study aims to explore the role of board gender diversity in mitigating chief executive officer (CEO) luck. CEOs are “lucky” when they receive stock option grants on days when the stock price is the lowest in the month of the grant, implying opportunistic timing. Design/methodology/approach This study uses a logistic regression analysis and an instrumental-variable analysis. The sample consists of 3,249 firm-year observations from 2010 through 2015. Findings The results show that female directors significantly deter the opportunistic timing of option grants. This study finds that gender diversity – as measured by the percentage of women on the board, the percentage of female independent directors and the percentage of female directors on the compensation committee are likely to reduce the odds that CEOs receive opportunistically timed lucky grants. The results are consistent with those in prior research that documents the benefits of board gender diversity. Practical implications The research findings are beneficial to policymakers and regulators, as it allows them to assess the importance of diversity on boards in the monitoring of the managers, particularly as it pertains to the design of CEO compensation packages. Furthermore, these findings have implications for Ibero-American countries as they shed light on the importance to undertake measures and reforms to promote board effectiveness by the introduction of gender diversity. Originality/value While prior research has examined the effect of board gender diversity on firm performance, the study is the first to investigate the effect of female directors on the opportunistic timing of option grants, using a rigorous empirical framework that explicitly accounts for endogeneity.

Abstract 2323: Statin Use and Discharge Disposition After Ischemic Stroke Hospitalization

Stroke ◽  
2012 ◽  
Vol 43 (suppl_1) ◽  
Author(s):  
Alexander Flint ◽  
Hooman Kamel ◽  
Babak Navi ◽  
Vivek Rao ◽  
Bonnie Faigeles ◽  
...  
Keyword(s):  
Ischemic Stroke ◽  
Instrumental Variable ◽  
Multivariable Analysis ◽  
Treatment Patterns ◽  
High Dose ◽  
Instrumental Variable Analysis ◽  
Discharge Disposition ◽  
Usual Dose ◽  
Statin Use ◽  
Variable Analysis

Objective: To determine whether statin use is associated with improved discharge disposition after ischemic stroke. Methods: We analyzed 12,689 patients with ischemic stroke over a 7 year period at 17 hospitals in Kaiser Permanente Northern California. We used multivariable generalized ordinal logistic regression and instrumental variable analysis of treatment patterns by hospital to control for the possibility of confounding. Results: Statin users before and during stroke hospitalization were more likely to be discharged home (54.9% for statin users, 46.3% for statin non-users) and less likely to die in hospital (5.3% for statin users, 10.3% for statin non-users). Patients who underwent statin withdrawal in-hospital were less likely to be discharged home (39.1% for statin withdrawal, 54.9% for statin continuation) and more likely to die in hospital (22.3% for statin withdrawal, 5.3% for statin continuation). Users of higher statin doses (>60 mg / day) were even more likely to be discharged home (62.5% for high dose statin, 56.5% for usual dose statin, and 47.4% for no statin) and less likely to die in hospital in-hospital (3.5% for high dose statin, 5.6% for usual dose statin, and 10.6% for no statin). These results were confirmed by multivariable analysis. The association of statin use and improved outcomes was also confirmed by instrumental variable analysis of treatment patterns by hospital, and thus this association cannot be explained by confounding at the individual patient level. Conclusions: Statin use is associated with improved discharge disposition after ischemic stroke, particularly at higher doses.

Methods matter: dealing with low compliance in sports injury trials analyses using instrumental variable analysis

2020 ◽  
pp. bjsports-2020-102155
Author(s):  
Pascal Edouard ◽  
Kathrin Steffen ◽  
Laurent Navarro ◽  
Mohammad Ali Mansournia ◽  
Rasmus Oestergaard Nielsen
Keyword(s):  
Instrumental Variable ◽  
Sports Injury ◽  
Instrumental Variable Analysis ◽  
Variable Analysis
Sign in / Sign up

Export Citation Format

Share Document