Leadership Attributes Among Women Bankers
DOI:
https://doi.org/10.61841/nve29955Keywords:
banking supervision, banks, business, outcomes, stability, financial, supervision, capital buffersAbstract
Women make up a disproportionately small percentage of executive boards at banks and financial oversight organizations. Less than 20% of board positions in banks and financial oversight organizations are held by women across the world. In contrast, there is a sizable pool of qualified female graduates. In the United States and the United Kingdom, women accounted for half of all business and social science graduates in 2010-2011, but just 30% of all economics graduates.
A "glass ceiling" in finance is becoming more evident, yet it may not have much of an effect on financial outcomes like stability. Existing research is patchy, with studies focused on either narrow characteristics of risk-taking or narrow geographical regions. This paper compiles a large dataset on the banking industry, including its features and performance, and also on the proportion of women on the boards of trustees from various sources, covering 72 nations over 13 years, in order to investigate the correlation between gender and financial security. The study also introduces a new dataset on the percentage of women serving on banking supervisory agency boards in 113 countries to investigate whether or not the presence of women on such boards correlates with certain banking outcomes, like stability. Our research adds to the scholarly conversation in two ways. In the first place, we provide extensive data that enables us to give fresh stylized statistics on the proportion of women serving on bank boards and in managerial positions across different banking sectors and geographies. Women make up fewer than 2% of CEOs in the banking industry, as shown by the sample, which also confirms the low representation of women on boards. When comparing savings banks to investment banks, holding companies for banks, and insurance companies, the former has a larger percentage of women working there. Our data challenges conventional wisdom by revealing that women make up a disproportionately large proportion of bank board members and banking supervisory agency board members in several low- and middle-income nations. Second, the article discovers fresh data indicating that the presence of women on boards of banks may have an impact on bank stability through larger capital buffers, while other important characteristics are held constant. There seems to be a correlation between the number of women on banking oversight boards and the health of financial institutions
Downloads
References
1. Banking on Women Leaders: A Case for More? https://www.imf.org/en/Publications/WP/Issues/2017/09/07/Bankingon-Women- Leaders-A-Case-for-More-45221
2. Closing the gap: Leadership perspectives on promoting women in financial services
3. https://www.imf.org/en/Publications/WP/Issues/2017/09/07/Banking-on-Women- Leaders-A-Case-for-More-45221
4. Female leadership in banking and bank risk https://www.abacademies.org/articles/Female-leadership-in-bankingand-bank- risk-1528-2635-21-3-122.pdf
5. Abadie, Alberto, and Guido W. Imbens. 2011. “Bias-Corrected Matching Estimators for Average Treatment
Effects,” Journal of Business & Economic Statistics, January 2011, Vol. 29, No. 1.
6. Adams, Renee B., and Daniel Ferreira. 2009. “Women in the boardroom and their impact on governance and
performance,” Journal of Financial Economics, Vol. 94, 291–309. and Vanitha Ragunathan. 2013. “Lehman
Sisters,” FIRN Research Paper. SSRN: http://dx.doi.org/10.2139/ssrn.2380036. and Patricia Funk. 2012. “Beyond
the Glass Ceiling,” Management Science, Vol. 52(2), 219–235.
7. Bandiera, Oriana, Andrea Prat, Luigi Guiso, and Raffaella Sadun. 2011. “Matching firms, managers and
incentives,” National Bureau of Economic Research Working Paper, 16691.
8. Beck, Thomas, Behr, Patrick, and Guettler, Andre, 2012. “Gender and Banking: Are Women Better Loan
Officers?” European Banking Center Discussion Paper, 2009–19.
9. Berger, Allen, Thomas Kick, and Klaus Schaeck. 2014. “Executive board composition and bank risk taking,”
Journal of Corporate Finance, Vol. 28, 48–.65.
10. Catalyst Census. 2014. “Women Board Directors” http://www.catalyst.org/ knowledge/2014-catalyst-censuswomen-board-directors.
11. Christiansen, Lone Engbo, Huidan Lin, Joana Pereira, Petia Topalova, Rima Turk, and
12. Petya Koeva. 2016. “Unlocking female employment potential in Europe: Drivers and Benefits,” IMF European
Department, IMF Fund Strategy, Policy, and Review Department.
https://www.imf.org/external/pubs/ft/dp/2016/eur1601.pdf.
13. Čihák, Martin, Demirgüç-Kunt, Asli, and Feyen, Erik, and Levine, Ross. 2012. “Benchmarking Financial Systems
Around the World,” World Bank Policy Research Working Paper No. 6175, August 1.
http://documents.worldbank.org/curated/en/ docsearch/document-type/620265.
14. Croson, Rachel, and Uri Gneezy. 2009. “Gender Differences in Preferences,” Journal of Economic Literature,
47(2): 448–74.
15. Demirguc-Kunt, Asli, and Harry Huizinga. 2012. “Do We Need Big Banks? Evidence on Performance, Strategy
and Market Discipline,” BIS. http://www.bis.org/bcbs/ events/bhbibe/demirguc.pdf
16. Gul, Ferdinand A., Bin Srinidhi, and Judy S.L. Tsui. 2012. “Board Gender Diversity, Auditor Quality Choice and
Audit Fees,” April. SSRN: http://ssrn.com/ abstract=2041161.
17. Hillman, Amy J., Christine Shropshire, and Albert A. Cannella Jr. 2007. “Organizational Predictors of Women on
Corporate Boards.” The Academy of Management Journal, Vol. 50, No. 4, August, 941–952.
18. Huang, Jiekun, and Darren J. Kisgen. 2013. “Gender and Corporate Finance: Are Male Executives Overconfident
Relative to Female Executives?” Journal of Financial Economics, 108(3), 822–839.
19. Kaufman, Daniel, Aart Kraay, and Massimo Mastruzzi. 2010. “The Worldwide Governance Indicators:
Methodology and Analytical Issues,” World Bank Policy Research Working Paper, 5430.
20. Maechler, Andrea Michaela, Srobona Mitra, and Delisle Worrell. 2010. “Decomposing Financial Risks and
Vulnerabilities in Emerging Europe,” IMF Staff Papers, Vol. 57, No. 1, 25–60.
http://dx.doi.org/10.1057/imfsp.2009.31.
21. Nelson, Julie A. 2015. “Are Women Really More Risk Averse than Men? A Re-analysis of the Literature using
expanded methods,” Journal of Economic Surveys, Vol. 29, Issue 3, 566–585.
22. Rothstein Kass Institute. 2012. “Women in Alternative Investments: Building Momentum in 2013 and Beyond,”
Second Annual Survey, December.
23. Wolfers, Justin, 2006. “Diagnosing Discrimination: Stock Returns and CEO Gender,” Journal of the European
Economic Association vol. 4(2–3), pages 531–41, 04–05. MIT Press.
24. Abi, E., & Jijo, G. (2012). Emotional intelligence and job satisfaction: A correlation study. International Journal of
Commerce & Behavioural Science, 1(4),37-41.
25. Ali, A., & Haider, J. (2012). Impact of internal organizational communications on employee job satisfaction: Case
of some Pakistani Banks. Global Advanced Research Journal of Management and Business Studies, 1(10), 38-44.
26. Chen, J. C., & Silverthorne, C. (2005). Leadership effectiveness, leadership style and employee readiness.
Leadership & Organisation Development Journal, 26(4), 280-288.
27. Evans, D. (2010). Aspiring to leadership: A woman’s world? An example of developments in France. Cross
Cultural Management: An International Journal, 17(4), 347-367.
28. Giri, V. N., & Kumar, B. P. (2010). Assessing the impact of organisational communication on job satisfaction and
job performance. Psychological Studies, 55(2),137-143.
29. Harris, C. A., & Leberman, S. I. (2011). Leadership development for women in New Zealand universities: Learning
from the New Zealand women in leadership program. Advances in Developing Human Resources, 22, 152-166.
30. Hidayat, S. E., Gayasuddin, M., & Muhammad, M. A. (2013). How important is an effective leader in creating
business sustainability?: A case study. International Journal of Management, 1(2), 75-78.
31. Kumarasinghe, S., & Hoshino, Y. (2010). The role and perceptions of middle managers and their influence on
business performance: The case of Sri Lanka. International Business Research, 3(4), 3-23.
32. Lyons, J. B., & Schneider, T. R. (2009). The effects of leadership style on stress outcomes. The Leadership
Quarterly, 20(5), 737-748.
33. Mohammad Mo., & Hossein Y. (2006). A study of relationship between managers’ leadership style and employees’
job satisfaction. Leadership in Health Services, 19(2), 11-28.
34. Mohammed, U. D., Yusuf, M. O., Sanni, I. M., Ifeyinwa, T. N., Bature, N. U., & Kazeem, A. O. (2014). The
relationship between leadership styles and employees’
35. performance in organisations: A study of selected business organisations in federal capital territory,
36. Abuja Nigeria. Leadership Quarterly, 6(22), 21-41.Nelson, O., & Cengiz, K. (2005). Malaysian women
entrepreneurs-understanding the ICT usage behaviours and drivers. Leadership and Organisation Development
Journal, 32(3), 1-14.
37. Oplatka, I. (2006). Women in educational administration within developing countries: Towards a new international
research agenda. Journal of Educational Administration, 44(6), 604-624.
38. Shooshtarian, Z., & Amini, M. (2012). The study of relationship between leaders’ behavior and efficiency and
return on investment. Polish Journal of Management Studies, 6, 55-67.
39. Walumbwa, F. O., & Hartnell, C. A. (2011). Understanding transformational leadership: Employee performance
links: The role of relational identification and self-efficacy. Journal of Occupational and Organisational Psychology,
84(1), 153-172.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
