Bridging the Female Gap at the Top: Implications for Firms’ Strategic Behavior and Performance

Abstract

A large literate has examined whether female representation in Top Management Teams (TMT) positively affects firm performance. These studies provide evidence of a performance advantage, however, evidence is rare when it comes to the question why this advantage occurs. We analyze how four intervening mechanisms - namely strategic conformity, risk taking, CSR and governance - influence the relation between female representation at TMT and firm performance. We test our theoretical predictions using data on the TMT of the S&P 1,500. We find robust mediating effects of conformity, risk taking and CSR: Female representation at TMT leads to less conformity, less risk taking and more CSR engagement. Performance effects are mixed.