M.A. Thesis:

Gender diversity in the board and risk of falling stock prices

The issue of sudden changes in stock prices has attracted much attention in recent years. These changes are seen in the form of a fall or a jump in the stock price. Due to the importance that investors place on their stock returns, the phenomenon of falling stock prices which leads to a sharp decline, has attracted more attention than the stock price jump. The main purpose of this study is to determine the role of gender diversity in the board and the risk of falling stock prices .This study is an applied research in terms of purpose, and in terms of the type of research project, because of relying on historical information, it is a post-event type and its inference method is inductive and correlational. The statistical population of the present study is the all companies listed on the Tehran Stock Exchange during a five year period between the years 2013-2017. Sample data of the companies studied after analyzing the availability of their information, were classified by Excel software and analyzed using Eviews software. The results showed that there is a negative and significant relationship between gender diversity in the board and the risk of falling stock prices. The results of this study are also in line with the theoretical foundations, since the presence or increase in the number of women on board (due to specific female personality traits) has led to increased conservatism in the firm, which reduces the risk of falling stock prices.

Keywords: falling Stock Price Risk, Corporate Governance, Gender Diversity on board