Wives’ empowerment and corporate financial risk in Chinese family firms

•There is heterogeneity in female cofounders’ empowerment in Chinese family firms.•Founders’ wives have higher voting rights in regions with less gender inequality.•The wife's voting rights are associated with less debt and more cash of the firm.•The wife's management control is also associated with less debt and more cash.•The wife's empowerment in the firm is associated with lower earnings volatility.