Does chairperson gender matter? Evidence from the cost of equity capital

This paper examines the effect of chairperson gender on the cost of equity capital. Using a sample of Chinese-listed firms, we find that the presence of chairwomen is associated with significantly lower cost of equity capital. Furthermore, this effect is stronger for firms with powerful chairpersons. Mechanism tests show that this effect is more pronounced among firms that have weaker corporate governance, are headquartered in lower-trust environments, and have higher retail ownership, suggesting that the presence of chairwomen mitigates expropriation risk perceived by equity investors. Collectively, our findings highlight the importance of chairperson gender for equity financing.