Female chief executives are less likely to rack up debt

FEMALE chief executives are less likely to burden businesses with debt than their male counterparts, a study shows.

The average value of borrowings is around 2.7pc lower for companies with a female boss, research by Durham University Business School has found, based on an analysis of America’s S&P 1500 index between 1993 and 2021

Researchers said the findings were more pronounced among leaders at an earlier stage of their careers.

That is because younger men were “more likely to rack up arrears” in search of greater rewards, while younger women tended to be more conservative. The findings come amid widespread concern about the lack of women in senior roles, with many facing resistance as they reach the top.

Dame Sharon White, the outgoing John Lewis chairman, last year claimed that she struggled to find men who would work for women.

Improvement in gender equality across male-dominant sectors such as finance has been particularly slow, with evidence from 40 women across the industry revealing yesterday that “sexist office banter” has become “more underhand and pernicious” in recent years. In a summary of testimonies published yesterday, MPS detailed how the Metoo movement had not translated into the City as “sexual harassment remained commonplace” – now taking place at conferences and work trips rather than in the office.

The evidence, which also found that many non-drinkers working in the City felt pressured to attend drinking events in order to fit in, was released ahead of the final session of a parliamentary inquiry into whether sexism in the City has improved since a review in 2018.

Sam Woods, who leads the Bank of England’s Prudential Regulation Authority, was questioned by MPS yesterday alongside Nikhil Rathi, the Financial Conduct Authority (FCA) chief executive. The pair insisted that they were focused on stamping out bullying in the sector. Mr Rathi said: “Only 12pc of investment managers [in the UK] are women – you look at that and think, ‘Is that really the sign of a healthy, competitive industry?’”

Mr Woods said it was “very disturbing” to hear the recent evidence of toxic behaviour. The FCA last year proposed tougher rules against companies that fail to punish abusive behaviour or “non-financial misconduct” at work.

Amanda Blanc, the chief executive of Aviva, started a fierce debate last month after she told MPS that all senior white male recruits must get final sign-off from her as part of a diversity drive.