Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Do Female Directors Influence Future Stock Price Crash Risk? Firm-Level Evidence from Korea

Author(s): Boyoung Moon, Soo Yeon Park

This study examines whether female directors contribute to reducing firm-level future stock price crashes. A sample of Korean firms revealed that female directors mitigate the risk of future stock price crashes. This result was more pronounced in firms with high information asymmetry, and the findings are shown to be robust to endogeneity concerns. Accordingly, we find that female directors play an essential role in monitoring managerial private disclosure behavior, reducing future stock price crash risk.

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