Board gender diversity and cyber risk management in FinTech and InsurTech firms

Purpose This study aims to examine whether female representation on boards and key monitoring committees, together with women directors’ risk management expertise, is associated with cyber risk management in FinTech and InsurTech firms. It also investigates whether shareholder support for women directors and Big Three ownership are associated with the intensity of cyber risk management. Design/methodology/approach This study uses a panel of 87 firms drawn from the Nasdaq FinTech Index and the Nasdaq Insurance Index (IXIS) over the period 2011–2022. The analysis is conducted using an ordered logit model for panel data. Findings The results show that greater female board representation is associated with higher cyber risk management intensity. This association is stronger when women directors reach a critical mass, serve on key monitoring committees and possess risk management expertise. In addition, the findings document a positive relationship between the intensity of cyber risk management and shareholder support for women directors as well as the ownership stakes of the Big Three asset managers. Originality/value This study makes several original contributions to the literature. First, it focuses on firms’ cyber risk management intensity rather than on realized cyber incidents. Second, it adopts a disclosure-based approach to assess cybersecurity governance. This measure captures board oversight and risk management practices not observable in incident-based studies. Third, it focuses on FinTech and InsurTech firms, where cyber risk is economically material but board-level governance remains underexplored. Finally, it jointly examines several governance mechanisms, including female representation on monitoring committees, women directors’ risk management expertise, shareholder voting support for women directors and Big Three ownership.