Gender Diversity and Financial Risk Disclosure: Investigating the Moderating Role of CEO Narcissism

Abstract

This study examines the role of gender diversity and CEO narcissism on financial risk disclosure using data from Pakistani-listed firms from 2013 to 2022. Poisson regression analysis reveals that gender diversity positively influences financial risk disclosure, supporting both resource- and agency-based reasoning. CEO narcissism moderates the relationship; however, it suggests that the agency-based viewpoint has greater empirical validity. Given the apparent importance of diversity in signaling robust attitudes to risk even in the face of CEO narcissism, the study supports regulatory reform to encourage and consolidate female participation on the board.