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Study: Banks May Favor Corporations with Female CFOs

Study: Banks May Favor Corporations with Female CFOs

A recent study conducted by Rensselaer Polytechnic Institute (RPI) suggests corporations with female CFOs are able to obtain lower prices on bank loans.

CFO Magazine reports the study, which examined a number of companies found in the S&P 1500 over a period of more than 10 years,

A recent study conducted by Rensselaer Polytechnic Institute (RPI) suggests corporations with female CFOs are able to obtain lower prices on bank loans.

CFO Magazine reports the study, which examined a number of companies found in the S&P 1500 over a period of more than 10 years, found those companies with female finance chiefs received 11 percent lower bank-loan prices than their counterparts with male CFOs.

The authors of the study reportedly hypothesize that banks believe female finance chiefs are more risk-averse, with this latest survey adding to prior research suggesting these women are more conservative with their accounting policies, CFO noted.

According to the publication, a 2009 study written by a Boston College assistant professor and a Ph.D candidate found that the stock market reacts more favorably to acquisition announcements made by companies with female finance chiefs.

A number of major companies have named female CFOs over the past few months, including Staples and Nestle, according to reports. CFO notes there were 45 female finance chiefs at Fortune 500 companies as of June 1. 

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