Female representation in management and supervisory boards and risk management practices: evidence from Poland

Abstract

There is unequivocal empirical evidence that women are more risk averse than men. In this respect, this study hypothesises that companies with higher female representation in manage‐ ment and supervisory boards demonstrate higher level of risk management practices, as a re‐ sult of a greater degree of concern or caution expected from female board members. The em‐ pirical examination on a sample of Polish public companies has shown that there was a statis‐ tically significant relationship between female board representation and the extent of reported risk management practices. However, no support was found to confirm the relationship be‐ tween feminisation of a board and holdings of financial slack, as a buffer against negative risk outcomes.