The Effect of Chief Executive Officer Gender on Stock Price Crash Risk: Evidence from Listed Firms on the Tehran Stock Exchange

Authors

  • Seyed Fakhreddin Fakhrhosseini * Department of Market and Business, Ka.C, Islamic Azad University, Karaj, Iran. https://orcid.org/0000-0001-5955-1913
  • Rasoul Naserhojjati Rudsari Department of Accounting, Management and Accounting Faculty, Islamic Azad University Tonekabon Branch, Tonekabon, Iran.

https://doi.org/10.22105/aaa.v3i1.92

Abstract

This study investigates the effect of Chief Executive Officer (CEO) gender on stock price crash risk in firms listed on the Tehran Stock Exchange. Utilizing data from 82 companies over the 2012–2023 period and employing a panel data regression methodology, we measure crash risk using three established proxies: the negative skewness of returns, down-to-up volatility (also known as asymmetric volatility), and asymmetric variance. The results reveal that CEO gender does not have a significant effect on the first two measures; however, it significantly influences asymmetric volatility. This suggests that while the presence of female CEOs does not necessarily prevent a sudden stock price crash, it can contribute to moderating return volatility and enhancing corporate governance through greater transparency and conservative reporting practices. These findings underscore the importance of promoting gender diversity in top management to improve investor confidence and promote stability in the capital market.

Keywords:

Ownership structure, Chief executive officer gender, Stock price crash risk

References

  1. [1] Askarany, D., Jafari, S., Pouryousof, A., Habibi, S., & Yazdifar, H. (2025). Board gender diversity and risk management in corporate financing: A study on debt structure and financial decision-making. Risks, 13(1), 11. https://doi.org/10.3390/risks13010011
  2. [2] Guo, J. (2024). Women corporate board members and stock performance. International journal of scientific research and management (IJSRM), 12, 7815–7825. https://doi.org/10.18535/ijsrm/v12i11.em01
  3. [3] Singh, K., & Arora, A. (2025). Killing two birds with one stone: Gender diversity, information disclosures and financial distress. Social responsibility journal, 21(1), 112–132. https://doi.org/10.1108/SRJ-01-2024-0064
  4. [4] Satti, Z. W., Munir, N., Tariq, J., Khan, M. O., & Yab, H. (2025). Gender diversity and economic efficiency: Reducing information asymmetry through women on boards. The critical review of social sciences studies, 3(1), 466–485. https://thecrsss.com/index.php/Journal/article/download/165/184
  5. [5] Özparlak, G. (2024). Does board gender diversity reduce information asymmetry? evidence from the USA. Pamukkale üniversitesi sosyal bilimler enstitüsü dergisi, (64), 215–230. https://doi.org/10.30794/pausbed.1494040%0A
  6. [6] Natalia, S., & Yur’evna, P. E. (2024). Agency theory of corporate governance and board diversity. Modern technologies and scientific and technological progress, 2024(1), 391-393. https://angtu.editorum.ru/en/nauka/article/82341/view
  7. [7] Sjåfjell, B. (2025). Revisiting agency theory: A radical rethinking of allocation of responsibility, accountability and liability. In Radical business perspectives for sustainability transitions (pp. 194–222). Edward Elgar Publishing. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4835681
  8. [8] Subhani, W., Amin, A., Naz, M. A., Sultan, N., & Aslam, S. (2024). Board gender diversity and firm value: A case of PSX. Bulletin of business and economics (BBE), 13(1), 237–245. https://doi.org/10.61506/01.00197
  9. [9] Fernandes, C. De A., & Machado, M. A. V. (2023). Board of directors, gender diversity and monitoring. Revista de administração de empresas, 63, e2021--0753. https://doi.org/10.1590/S0034-759020230303x
  10. [10] Candy, C., Alex, A., & Marheni, D. K. (2024). Board gender diversity, dividend payout, and firm value: study on IDX high dividend 20. Manajemen dan bisnis, 23(2), 336–350.
  11. [11] Akhgar, M. O., & Fatehi, R. (2024). Fraud in financial statements and stock price crash risk. Financial accounting knowledge, 11(2), 115–133. (In Persian). https://www.sid.ir/fileserver/jf/1238-284394-x-1365108.pdf
  12. [12] Chen, R. (2025). The impact of financial leverage ratio on the stock price crash risk. Advances in economics, management and political sciences, 144, 185–190. https://doi.org/10.54254/2754-1169/2024.GA19079
  13. [13] Yu, H. (2024). Analysis of the impact of investor sentiment on stock price crash risk. Highlights in business, economics and management, 40, 1144–1150. https://doi.org/10.54097/7nbf3y70
  14. [14] Zhang, P., Qu, Z., & Wang, Y. (2025). Stock liquidity and stock price crash risk: Evidence from China. Applied economics, 57(29), 4158–4172. https://doi.org/10.1080/00036846.2024.2348185
  15. [15] Liu, X., Liao, J., & Young, M. (2024). Living through an influential socio-political event: Early-life experiences and stock price crash risk. Finance research letters, 68, 106015. https://doi.org/10.1016/j.frl.2024.106015
  16. [16] Le, V. P., Nguyen, A. N., & Gregoriou, A. (2024). Insider trading, gender diversity within the board room, CEO pay gap, and stock price crash risk. International journal of finance & economics, 29(2), 1378–1400. https://doi.org/10.1002/ijfe.2731
  17. [17] Abadi, D. M., Attabadi, A. B., & Amir. (2022). Causes of the fall in stock prices of companies listed on the Tehran Stock Exchange based on meta-analysis interpretations: Evidence from domestic studies. Financial management strategy, 10(4), 75-102. (In Persian). https://jfm.alzahra.ac.ir/article_6516_8b357ffc7e21e78ef15c600b2c9976ee.pdf
  18. [18] Kazemi, S. P., Gholamrezapoor, M., Arab, R., & Shamgani, R. (2021). The effect of audit partners gender on the future stock price crash risk. Professional auditing research, 1(4), 50–69. (In Persian). https://doi.org/10.22034/jpar.2022.248651
  19. [19] Chen, W. J., Santini, F., Carnevale, G., Chen, J. N., Liu, S. H., Lavoué, S., & Mayden, R. (2014). Chen et al 2014 Appendix. https://www.researchgate.net/publication/266970060_Chen_et_al_2014_Appendix
  20. [20] Shojaie, Z. (2025). Investigate the effects of insider trading, board gender diversity and CEO characteristics on the stock price crash risk in companies listed on the Tehran Stock Exchange. Journal of accounting and management vision, 7(99), 116–135. (In Persian). https://www.jamv.ir/article_222063_en.html?lang=fa

Downloads

Published

2026-03-20

Issue

Vol. 3 No. 1 (2026): Accounting and Auditing with Applications (AAA)

Section

Articles

License

Copyright (c) 2026 Accounting and Auditing with Applications (AAA)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Fakhrhosseini, S. F. ., & Naserhojjati Rudsari, R. . (2026). The Effect of Chief Executive Officer Gender on Stock Price Crash Risk: Evidence from Listed Firms on the Tehran Stock Exchange. Accounting and Auditing With Applications , 3(1), 52-63. https://doi.org/10.22105/aaa.v3i1.92

Similar Articles

1-10 of 40

You may also start an advanced similarity search for this article.