CEO Risk-Taking Incentives and and gender from the behavioral agency model perspective Implications for risk and performance

The aim of this paper is to develop a behavioral representation model by focusing on the moderating role of female managers on the relationship between risk-taking motivations and risk“systematic vs idiosyncratic” and performance outcomes.

This research has been carried out using annual data of companies accepted in Tehran Stock Exchange during the period of 2012-2018. For testing of research hypotheses, multivariate linear regression has been used based on panel data.

The results of the first hypothesis show that the effect of the interactive role of female managers on the relationship between delta and non-systematic risk is negative and significant compared to systematic risk relationships. The results of the second hypothesis also show that female managers have a direct impact on the relationship between voluntary incentives for managers (Delta) and company performance.

The results suggest a very conservative, risk-averse situation for female managers when they are given optional incentives for idiosyncratic (firm-specific) risk. Also, the results confirm that female managers are less likely to face areas of systematic risk, although more conservative, but lead to increased company performance.