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1 * Schmidt & Sevak 2006 Gellatly & St rmer 2017 Becker Roussanov & Savor 2014 CEO CEO Nicolosi & Yore 2015 CEO CEO Griffin et al CEO CFO 2015 Van Auken & Werbel 2006 Poza & Messer * mailjinli@ 126. com panyue@ xmu. edu. cn xmu. edu. cn

2 % % 30% Rosenblitt et al Faccio et al CEO CEO CEO de Palma et al Carlsson et al Carlsson et al Yilmazer & Lich 2015 Jianakoplos et al Bateman & Munro 2005 Carlsson et al Amore et al Belenzon et al

3 95% de Palma et al Carlsson et al Carlsson

4 Chiappori 1988 Carlsson et al Yilmazer & Lich 2015 de Palma et al Jianakoplos et al Van Auken & Werbel 2006 Ashraf 2009 Wong et al Jia et al Anderson & Reeb % ST * ST % CSMAR 2. 1 RiskTaking Faccio et al Bernile et al

5 Lev Cash Lev Cash 2 Toge Toge John et al Faccio et al Li & Tang Size 2 ROA 3 Growth 4 Intangible 5 Top1 6 Boardcount 7 Indbrate 8 Duality 9 MultiControl Firmage 11 Husage 12 Husedu GDP GDP Inddummy 1% 1. RiskTaking i t = β 0 + β 1 Toge i t + β 2 Controls i t + ε i t 1 1 Panel A Hussha Wifesha Panel B % 37% 95% % 2 2 Panel A 194 1

6 Panel A Hussha Wifesha Wifesha > Panel B Wifesha < % Hussha < % 0. 1 Wifesha % 0. 1 Hussha % % % 2 Panel A Variables Size ** Intangible * Indbrate * Firmage ** Husedu * Panel B Variables Male * 2 Panel B 1 5 Male Panel B 3 3 Panel A Toge = % Toge = % 195

7 3 Panel A Variables Toge = % % 2574 Toge = % % 1359 Total Panel B Variables Num_sha *** Num_TMT *** 3 Panel B Num_sha Num_TMT Variables Lev *** Cash * Lev Toge 1% 2 Cash Toge Lev 2 Cash Toge *** ** Adj. R *** ** * 1% 5% 10% 1 196

8 MultiControl Toge 3. 1 Toge Paifang Toge Toge Lev Cash Lev Cash ** * * *** *** Adj. R Paifang 2 3 Toge % 2 PSM 1 197

9 PSM Onlysha WifeTMT Onlysha 1 0 WifeTMT Onlysha WifeTMT 3 4 Onlysha

10 Onlysha WifeTMT Lev Cash Lev Cash Lev Cash *** * * * *** *** Adj. R Female_rate Toge Toge 2 3 Toge Female_rate 3 Nonlocal 8 4 Toge 5 6 Toge 4 Ashraf

11 8 Toge Female_rate Male Female_rate Lev Cash Male Lev Cash ** ** *** ** *** ** *** * ** ** Adj. R Coles et al John et al Li et al

12 Rela_TMT_gap Toge Toge Toge Rela_TMT_gap / Wife_Edu / Div_Rate Rela_TMT_gap / Wife_Edu / Div_Rate Lev Cash Lev Cash Lev Cash * ** ** * ** *** ** * ** * ** *** *** *** *** Adj. R Wife_Edu Toge Div_Rate Toge

13 Toge / + 2 / 3 - / 4 Coles et al Li et al ROA ROA ROA Amore M. D. Miller D. Le Breton-Miller I. and Corbetta G For Love and Money Marital Leadership in Family Firms Journal of Corporate Finance Anderson R. C. and Reeb D. M. J Founding-family Ownership and Firm Performance Evidence from the S&P

14 Journal of Finance Ashraf N Spousal Control and Intra-Household Decision Making An Experimental Study in the Philippines American Economic Review Bateman I. and Munro A An Experiment On Risky Choice Amongst Households Economic Journal C176 C189. Belenzon S. Patacconi A. and Zarutskie R Married to the Firm A Large-scale Investigation of the Social Context of Ownership Strategic Management Journal Bernile G. Bhagwat V. and Rau P. R What Doesn't Kill You Will Only Make You More Risk-Loving Early-Life Disasters and CEO Behavior Journal of Finance Carlsson F. He H. Martinsson P. Qin P. and Sutter M Household Decision Making in Rural China Using Experiments to Estimate the Influences of Spouses Journal of Economic Behavior and Organization Carlsson F. Martinsson P. Qin P. and Sutter M The Influence of Spouses On Household Decision Making Under Risk An Experiment in Rural China Experimental Economics Chiappori P. A Rational Household Labor Supply Econometrica Coles J. Daniel N. and Naveen L Managerial Incentives and Risk-Taking Journal of Financial Economics de Palma A. Picard N. and Ziegelmeyer A Individual and Couple Decision Behavior Under Risk Evidence On the Dynamics of Power Balance Theory and Decision Faccio M. Marchica M. and Mura R Large Shareholder Diversification and Corporate Risk-Taking Review of Financial Studies Faccio M. Marchica M. T. and Mura R CEO Gender Corporate Risk-taking and the Efficiency of Capital Allocation. Journal of Corporate Finance Gellatly C. and St rmer C How Does Marriage Affect Length of Life Analysis of a French Historical Dataset From an Evolutionary Perspective Evolution and Human Behavior Griffin J. M. Kruger S. A. and Maturana G Do Personal Ethics Influence Corporate Ethics SSRN Working Paper https / /ssrn. com /abstract = Jia Y. Van Lent L. and Zeng Y Masculinity Testosterone and Financial Misreporting Journal of Accounting Research Jianakoplos N. A. Bajtelsmit V. L. and Bernasek A How Marriage Matters to Pension Investment Decisions Journal of Financial Service Professionals John K. Litov L. and Yeung B Corporate Governance and Risk-Taking Journal of Finance Li J. and Tang Y. I CEO Hubris and Firm Risk Taking in China The Moderating Role of Managerial Discretion Academy of Management Journal Li K. Griffin D. Yue H. and Zhao L How Does Culture Influence Corporate Risk-Taking Journal of Corporate Finance Nicolosi G. and Yore A. S I Do Does Marital Status Affect How Much CEOs Do Financial Review Poza E. J. and Messer T Spousal Leadership and Continuity in the Family Firm Family Business Review Rosenblitt J. C. Soler H. Johnson S. E. and Quadagno D. M Sensation Seeking and Hormones in Men and Women Exploring the Link Hormones and Behavior Roussanov N. and Savor P Marriage and Managers' Attitudes to Risk Management Science Schmidt L. and Sevak P Gender Marriage and Asset Accumulation in the United States Feminist Economics Van Auken H. and Werbel J Family Dynamic and Family Business Financial Performance Spousal Commitment Family Business Review Wong E. M. Ormiston M. E. and Haselhuhn M. P A Face Only an Investor Could Love CEOs' Facial Structure Predicts Their Firms' Financial Performance Psychological Science Yilmazer T. and Lich S Portfolio Choice and Risk Attitudes A Household Bargaining Approach Review of Economics of the Household

15 Couples' Joint Holdings and Corporate Risk-taking XIAO Jinli a PAN Yue b and DAI Yiyi a a School of Management Xiamen University b School of Economics Xiamen University Summary Studies of marriage economics have found that marriage and family characteristics affect the family's economic development. Building on research in marriage economics recent studies in finance have begun to explore the relationship between marriage or family issues and corporate financial behavior. Studies have found that the marital status of company executives affects a company's risk preference Nicolosi & Yore 2015 Roussanov and Savor Executive teams with couples make longer-term investment decisions for companies than teams without couples Amore et al When the two largest shareholders in a small family firm are husband and wife the firm will make fewer investments and adopt more conservative financial policies Belenzon et al In a family firm the entrepreneur's family members may be involved in the company and may influence the company's behavior. In particular a husband and wife team has a strong influence on a company's behavior Chua et al Poza & Messer However the degree of participation in the company varies across family firms Gundry & Welsch There is also often a significant difference in the risk preferences of a husband and wife. Therefore the participation of a husband and wife team in a family firm may affect risk decision-making. This study integrates the two independent research perspectives of marriage and gender which previous studies have shown can influence corporate financial behavior. The sample consists of Shanghai-Shenzhen A-share listed family firms from the 2007 to 2015 period. The study examines the effect of joint shareholding by couples in listed family firms on the companies' risk taking during the matrimonial period. The study has three main findings. First compared to family firms that are individually held by a husband or wife listed family firms that are jointly held by a couple have a significantly lower level of risk taking that is the companies' have lower debt ratios and higher cashholdings. These results are robust to using instrumental variables that resolve possible endogeneity problems and alternate metrics. Second this study finds that in a listed family firm if the actual controller's wife is a shareholder this significantly increases the probability of her having a position in the firm indicating that participation in management is an important path through which the actual controller's wife influences the company's risk preference. Joint ownership of shares between a husband and wife significantly increases the probability of the company hiring female executives which also reduces the company's risk-taking level to some extent. Furthermore husbands who share company shares with their wives have fewer masculine tendencies. Their more respectful attitude towards women and their relatively mild personality traits may also make the company's risk decisions more conservative and cautious. Finally a further study has found that if a wife has more relatives in the company than the husband the wife has more say in corporate decision making. If the actual controller's wife has higher academic qualifications than her husband this significantly strengthens her influence on the company's decision-making. In addition the higher the divorce rate in the region the worse the marriage and family atmosphere may be. This weakens the level of risk taking in listed family firms where the couple jointly holds shares. The main contributions of this study are as follows. Building on previous studies of marriage economics this study explores the influence of husbands' and wives' different risk preferences on joint decision-making and extends the research on family financial decision making to listed family companies controlled by couples. It broadens the perspective of the entrepreneurial decision-making model. This study is important given women's increasing participation in family firms' operations in China and examines how the actual controller's wife's attitude to risk affects the decision making of a listed family firm. The findings enrich and supplement previous research on family firms. Keywords Marriage Gender Couple's Joint Holdings Corporate Risk-taking JEL Classification G34 G38 O17 204

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