Are female CEOs more risk averse than male counterparts? Evidence from Vietnam

In this study, we examine the differences in risk preference between male and female CEOs of firms in Vietnam. Using firm fixed-effects and instrumental variable regressions, we find that female-managed firms are less likely to operate in industries with high levels of risk. Using decomposition analysis, we find that differences due to the observed characteristics of male- and female-managed firms account for 56% of the gap in the risk index between these firms. The differences due to coefficients of the characteristics explain around 58% of the gender gap in the risk index. Among characteristics of CEOs and firms, differences in CEO age and firm ownership contribute the most to the difference in the risk index between male- and female-managed firms. (C) 2019 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.