Do Women Political Leaders Enhance Government Financial Conditions? Evidence from U.S. Cities

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)

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Detail(s)

Original languageEnglish
Publication statusPublished - 20 Aug 2020

Conference

Title47th European Finance Association Annual meeting (EFA 2020)
Locationonline
Period20 - 21 August 2020

Abstract

This paper analyzes the effect of electing female political leaders on financing cost of local government debt. Using a regression discontinuity design to address endogeneity of female leadership, we examine 604 female-male contested mayoral elections in 336 U.S. cities during 1990-2014. We find that yield spreads of municipal bonds issued by cities with women mayors are around 33 basis point lower than cities with male mayors. This gender effect is more pronounced in cities with high financial distress risk before elections. Furthermore, we find that female mayors issued fewer debt than their male counterparts and improved municipal fiscal status during their incumbency.

Research Area(s)

  • women political leaders, regression discontinuity design, municipal bonds

Citation Format(s)

Do Women Political Leaders Enhance Government Financial Conditions? Evidence from U.S. Cities. / Hasan, Iftekhar ; Krause, Thomas; Qi, Yaxuan.

2020. Paper presented at 47th European Finance Association Annual meeting (EFA 2020), .

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)