Abstract

Using a sample of Chinese A share firms from 1991 to 2019, this thesis extends the literature on how business cycles and financial cycle wavelets relate to firm risks and performance after accounting for CEO demographic characteristics. The thesis documents that higher (lower) firm risks are associated economically and statistically with increases (decreases) during business or financial expansions (recessions). These associations also are more pronounced for business recession periods and financial expansion periods. The findings suggest that firms headed by female CEOs are less risk seeking throughout cycle wavelets compared to firms headed by their male counterparts. However, firm risk is higher for firms headed by a female CEO that has obtained a postgraduate degree. The relation between firm risk and performance during changing macro events is less conclusive. These findings potentially provide important implications for understanding business cycles and financial cycles and their effects on the corporate sector in China.