The impact of entrepreneurs’ wives participating in corporate management on company risk-taking

Abstract

To investigate the influence of spouses of business leaders on corporate decision-making behavior, we use data from 2003 to 2019 from Chinese listed family-controlled companies to examine the impact of entrepreneurs’ wives participating in corporate management on the risk-taking of family businesses. We found that entrepreneurs’ wives participating in company management significantly reduce the risk taking of family businesses, particularly when the wife is a shareholder in the company. Additionally, the wife’s age, level of education, and professional experience also affect her attitude and behavior toward participating in company management. When the wife is older and has a higher degree of education, the risk taking of the enterprise decreases. However, the wife’s rich professional experience can mitigate female conservatism and increase the company’s risk taking. Our research has implications for understanding gender differences in the context of the extension of marital power of Chinese entrepreneurs’ wives from the family to corporate decision-making and risk preferences. This helps to deepen our understanding of the role and status of women in China’s family business management.