Journal of Financial Economics

REF 157 Women and Finance

The introduction to the special “Women and Finance” issue of the Revue d'économie financière provides a critical analysis of gender inequality in the financial sector and in corporate governance, while summarizing the contributions of the various featured articles. This issue endeavors to show that the issues related to gender equity in finance go beyond the mere focus on improving performance. They are part of a broader perspective aimed at fostering inclusiveness and diversity. In this respect, many opportunities are emerging that require educational, institutional, and cultural reforms in order to combat discrimination and promote genuine equal opportunity.

Despite the progress that has been made, the financial sector is riddled with obstacles for women. They continue to face barriers that limit their access to financial services, equal pay and leadership positions. Yet the benefits of true gender equality are clear: improved economic performance, greater stability and better environmental stewardship. A multi-dimensional approach is needed. Mandatory measures such as quotas are necessary. But they must be accompanied by a profound change in attitudes. It is vital that men be fully aware of their role in the home and that young women's self-confidence be strengthened.

In contrast to common beliefs, women in finance may be less risk-averse than men in finance. This “atypical” gender difference can occur because of the choices that lead women and men to end up in finance. Using data on directors of financial and non-financial firms and members of the general population, I document that individual attributes like risk aversion can vary widely within groups of people. I also show that distributions of preferences can change once they are conditioned on choices. Formulating policies using assumptions about unconditional “typical” attributes can be misleading and lead to ecological fallacies like the “Lehman Sisters” hypothesis.

The concept of “financial literacy” has become a must when studying household finance. All empirical studies show that, overall, people's financial knowledge is rather limited, particularly in certain categories of the population, notably among women. This article examines the gender gap in France. The gap seems to be better accounted for by social norms, gender stereotypes, or preferences than by observable individual characteristics. A financial education policy aimed at improving literacy must therefore be differentiated according to gender.

Controlled laboratory experiments reveal significant differences in preferences and behavior between men and women: women tend to take fewer risks, be more patient and more loyal. The aim of this article is not to examine the causes of these differences (innate or acquired), but to look at how the differences can result in disparities in financial performance between men and women. Recent experimental economic studies have sought to examine the impact of the presence of women on the risk of speculative bubbles emerging in financial markets, the likelihood of bank runs, or the viability of microfinance programs, although no absolutely clear results have as yet been obtained.

This article presents an overview of the existing imbalance in the world of economics and finance research, particularly in France. It cannot be explained by an early onset of the imbalance in function of the orientation of students in economic studies. It worsens as young economists progress through their careers and it becomes persistent. To try to remedy this situation, initiatives set up in several countries through committees for the promotion of women economists (WinE) try to support them in their careers through mentoring and coaching programs or by setting up support networks, for example. Despite these various initiatives, parity and the shattering of the glass ceiling are objectives that are still far from being attained in the profession.

In this article, we explore the persistent gender imbalance in asset management, analyzing why women remain underrepresented despite various diversity initiatives. This disparity arises from deep-rooted cultural biases, stereotypes, and institutional structures that discourage women from entering and advancing in finance. Historical gender stereotypes frame finance as a masculine field, reinforced by media and workplace norms that deter female participation. Women encounter additional obstacles, including limited leadership opportunities and self-perception gaps, compounded by customer biases that favor male fund managers. These factors create a self-perpetuating cycle in which finance appears unwelcoming to women. We propose solutions such as fostering inclusive work environments, providing family-friendly policies, promoting women to leadership roles, and educating customers about biases. By encouraging allyship and shifting industry values, we aim to make finance a more viable and attractive career path for women. Increased female representation, we argue, could unlock new levels of innovation and leadership within the finance sector.

Men and women differ in their investment decisions. In this article, we review the main differences concerning risk aversion, portfolio selection, venture capital investments, and socially responsible investments, as well as their causes: genetic and social factors, financial education, advice, etc. These differences raise important public policy questions, particularly on the financial security of women in retirement. Recent developments in Artificial Intelligence and new related financial services (Fintechs and robo-advisors) can now offer promising tools for reducing inequalities.

This article emphasizes the importance of women becoming more involved in finance, not only for their financial autonomy but also for the boost it gives to the economy. Despite legislative advances in France, such as the Copé-Zimmerman and Rixain laws, which have improved parity in governing bodies, women remain under-represented in key positions, particularly in market finance and venture capital. Women's underinvestment, due to stereotypes and a lack of confidence, diminishes their wealth and negatively affects the financing of the economy. The article calls for breaking down these barriers and underscores the positive impact of diversity on company performance and sustainability.

The principle of equality between men and women, particularly in the workplace, is now (almost) universally accepted. Legislation has gone a long way towards making this principle a reality, and a big majority of companies declare that pursuing diversity, equity, and inclusion is a priority for them. Despite everything, there remain disparities. This disconnect between stated principles and actual reality raises several questions. How to measure gender inequalities in the workplace? Do we have reliable indicators? Can we choose our bank or companies to invest in based on these indicators? And if so, is that a good strategy? Spoiler alert: there's still a ways to go...

This article explores the evolution of gender diversity and workplace equality in the banking sector in France, highlighting progress and persistent challenges. Since the first initiatives in the 2000s, such as the agreements on professional equality, the banking sector has established itself as a pioneer in terms of feminization. Today, women represent more than half of the workforce and there has been a significant increase in management positions they hold. However, inequalities persist, particularly in terms of pay and representation at the highest levels. The article outlines avenues for overcoming these obstacles, including women's networks, training programs, and educational partnerships. At the same time, efforts are being made to attract women to scientific and technical fields. The inclusion of women, a key performance factor, is presented as necessary in order to guarantee sustainability and innovation in the banking sector.

This paper provides a review of the existing literature on the impact of microfinance on the empowering of women. Through an analysis of various academic studies, it emphasizes the potential benefits of microfinance, particularly in terms of financial independence and decision-making power for women. However, it also underscores limitations and challenges, such as over-indebtedness and patriarchal norms, which can hamper the effectiveness of these programs.

Long characterized by the limited presence of women, especially during the past decade central banks have seen a rapid increase in female representation among their leaders, which has been thought to be making up for the past. But currently a new phase of stagnation seems to be emerging. This article focuses on this trend, explores the reasons for the slowdown, and suggests avenues for renewing the push toward greater female representation within central banks. These ideas are part of the broader discussion on the expanding mandates of central banks, now including social and societal responsibilities. To better understand the issues at stake in this development, we conducted interviews with three female central bankers who have held or currently hold leadership positions in institutions located in three different geographic regions.

The feminization of corporate governance bodies is one of the major achievements of the last 15 years. This article looks at the current state of gender parity at the highest levels of corporate governance, i.e. on boards of directors, executive committees, and among CEOs. It examines the real economic and social effects of greater gender diversity and it emphasizes that more gender-balanced governance reduces risks, ensures greater resilience and ethical behavior, and improves environmental and social performance.

This article explores gender inequalities in financial markets and institutions, focusing on the internal and external barriers that women face. The authors identify two types of barriers: internal barriers, which exist within companies, and external barriers, which are shaped by financial markets, the media, and culture. The study examines the under-representation of women at different levels, particularly among business leaders, and draws attention to the gender biases and stereotypes that hinder their advancement. These obstacles, whether organizational, media-related, or societal, contribute to the persistence of inequalities in finance. The article concludes by making recommendations on how to improve the role of women in this crucial sector, emphasizing the importance of greater equity in order to promote economic growth and financial market efficiency.

Over the last fifteen years, gender quotas for boards of directors and supervisory boards of listed companies have grown in number, mainly in Europe. This article looks at the implementation and consequences of these quotas, contrasting this regulatory technique with a less strict approach, such as “comply or explain”. In fact, quotas have made it possible to massively increase gender representation on boards. However, their impact on the overall influence of women on governance (participation in subcommittees or as chairwomen of boards, as well as in management itself) has been more mitigated. We conclude by examining the Rixain law, which mandates gender quotas not at the board level (of directors or supervisory) but at the management level itself.

This article analyses the emergence and subsequent decline of Article 8, a public guarantee scheme for SME financing. Created in 1936 and included in the post-war category of medium-term capital expenditure credits that could be drawn on, it grew rapidly in importance during the 1970s, making up as much as 2% of business loans in the early 1980s. Based on the participation of corporatist groups, this mechanism was financially advantageous for the public authorities. We show that its decline and replacement by the current system of publicly guaranteed funds in the 1980s-1990s can be explained by the decline of these corporatist structures inherited from the inter-war period and the decline of the system of credit regulation created after the war in 1945.