Communications in Humanities Research ISSN: 2753-7072
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Research Article

The Impact of Board Gender Diversity and CFO Compensation on Financial Sustainability in China: A Power Distance Perspective

Kunying XinUniversity of York*

* Corresponding author: [email protected]

Abstract

This study focuses on how female diversity on the board and the compensation of the chief financial officer (CFO) affect the long-term financial health of Chinese companies. The focus of the study is on how the cultural factor of power distance affects this relationship. The study uses data from 4,509 Chinese A-share listed companies from 2009 to 2023 and adopts multiple regression analysis to study how gender diversity and CFO compensation affect corporate performance and performance in areas such as governance, finance, and environment (ESG). By controlling for factors such as company size, debt, and revenue growth, the results show that gender diversity on the board and fair CFO compensation mechanisms can significantly affect company survival. Obviously, power distance as a cultural factor will weaken these positive effects, especially in companies with highly concentrated power. The results reveal the importance of incorporating cultural context when formulating corporate governance policies and provide a reference for promoting gender diversity and executive compensation mechanisms to better achieve the company's long-term sustainable development goals.

Keywords: Board Gender Diversity; CFO Compensation; Financial Sustainability; Power Distance Culture
Published: December 31, 2024
DOI: 10.54254/2753-7064/2024.19132
Volume: CHR Vol.52
pp. 193-202
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