Female CFO and Stock Price Crash Risk: Evidence from Indonesia

Abstract

Stock price crash risk in a company can be caused by corporate governance. Most studies report the main factor of the stock price crash risk is the tendency of management to hold bad news from investors or the public. This study aims to analyze whether the gender differences in the CFO factor, gender diversity, and also the number of boards of directors contribute to information transparency. The method used in this research is the Fixed Effects Model to reduce the problem of endogeneity. The research used a sample of listed companies in Indonesia on the Indonesia Stock Exchange's mains board during the 2019-2021 period. The results showed that the gender of the CFO and the number on the board of directors has a positive impact on the stock price crash risk. While the variable of gender diversity showed a negative impact on the dependent variable.