Female Chief Research Articles

The influence of female CEOs on bank performance in Indonesia

The purpose of this study is to determine the influence of female Chief Executive Officers (CEOs) on the performance of banking companies listed on the Indonesia Stock Exchange for the period 2010-2018. The independent variable used in this study was female. The dependent variables used in this study are company performance which is proxied with Return on Assets (ROA) and Capital Adequacy Ratio (CAR). The source of data used in this study is in the form of financial statements of banking companies listed on the Indonesia Stock Exchange for the period 2010-2018. The sampling method used in this study used purposive sampling techniques. The model used in this study is panel data with a Fixed Effect Model approach. The results obtained from this study that CEO gender has a significant effect on ROA and CAR n

Gender Differences in Reserving Conservatism

Given the rapidly growing industry-wide trends to promote diversity, we provide the first evidence that executive gender differences impact insurer corporate decisions by examining reserve management. In a sample of property-liability insurers with 34 unique female chief executive officers (CEOs) from 2007 to 2013, we find that female CEOs are associated with more conservative loss reserves. Economically, female CEOs over-reserve by 2.25% of total assets, relative to male CEOs. Our identification strategy relies on an instrumental variable approach and a difference-in-differences design based on a propensity-score matched sample. In an analysis of a subset of 13 unique female CEOs involved in turnovers, we find that reserving conservatism increases (decreases) following male-to-female (female-to-male) CEO turnovers compared with male-to-male turnovers. Our study provides economic implications for the industry-wide initiatives and is relevant to various stakeholders.

CFO gender and financial statement comparability

This study examines the effect of chief financial officers (CFOs) gender on firms' financial statement comparability. Using a sample of Chinese listed firms, we find that firms with female CFOs exhibit higher comparability relative to firms with male CFOs. We further find that the positive relation between having a female CFO and comparability disappears in the industries that are dominated with male CFOs. In additional analyses, we fail to find any significant effects of having female chief executive officers (CEOs) or other female executives on comparability, highlighting the importance of CFOs in the domain of financial reporting decisions. Finally, we show that only in non-male CFO dominated industries, greater comparability is associated with an improvement in analysts' forecast accuracy and dispersion. Overall, our findings are consistent with the view that, due to their innate personality and behavioral differences, female CFOs are likely to exhibit stronger incentives to comply with accounting rules and standards, which in turn improves comparability. We also highlight the uniqueness of comparability by showing that it does not always co-move with reporting quality since it is an inter-firm attribute rather than a firm's own reporting characteristic.

Delving Into Feminine Stereotypes: Female CEOs and the Corporate Social (Ir)Responsibility–Firm Performance Relationship

In this study, we advance a more nuanced view of gender-based stereotypes about female chief executive officers (CEOs) to shed light on the divergent findings about outcomes associated with their firms’ actions. We draw on gender stereotyping literature and its delineation between prescriptive and descriptive gender stereotypes— how women ought to be/act versus how they actually are/act—to theorize that not all female CEOs embody the same prescriptive feminine ideals and, thus, variance in how they are perceived may affect outcomes manifesting from certain firm actions. Specifically, we theorize that there also exists a “double-edged” sword among female CEOs such that the more a female CEO is seen as descriptively aligning with prescriptive ideals of feminine actions and perceptions, the stronger the associated outcomes for their firms will be, whether positive or negative. We test how perceptions of communality and attractiveness—the two most desirable prescriptive perceptions for how women ought to be—affect the corporate social responsibility (CSR) and irresponsibility (CSiR) to firm performance relationship, which align, or fail to align, respectively, with desirable prescriptive feminine actions of helping or hurting others and society. We find that the more a female CEO descriptively aligns with such communality and attractiveness prescriptions, the stronger the CSR and CSiR to firm performance relationship will be. The results of our study suggest that the gendered beliefs to which female CEOs are subjected are more nuanced and complex than the current literature explains, contributing to theory and practice alike.

CEO gender and social versus economic value creation of social enterprises: an attention-based view

PurposeThis study aims to investigate the effects of CEO gender on social enterprise (SE) value creation and the moderating effect of selective attention on SEs’ dual goals (i.e. relative attention to social versus economic goals).Design/methodology/approachThe authors surveyed 596 active Taiwanese SEs to rate independent and moderating variables and received 191 responses (109 female and 82 male CEOs). The authors used external SE experts to evaluate each SE’s economic and social value creation, lowering the threat of common method bias and enhancing data quality.FindingsSocial value creation is higher with female chief executive officer (CEOs) (than with male CEOs), whereas economic value creation tends to be lower. But, attentional selection (i.e. changes in attention) to economic goals by female CEOs mitigates the negative relationship between female CEOs and economic value creation.Practical implicationsGender diversity in the top management team is critical for dual-goal attainment. Decision-makers’ attention focus could vary along with the situation to achieve the desired outcomes. Thus, creating an attention structure under a given situation may help guide the decision-making process toward the desired performance for SEs.Originality/valueLittle research brings the attention-based view to investigate the effects of managerial gender roles on the dual-goal performance (i.e. social versus economic value creation) of SEs and test its contingency, and to the best of the authors’ knowledge, this study is the first to do so. This study also adopted a unique research design asking outside SE experts to provide the performance data.

Gender differences in CEO risk tolerance: A look at fixed pay

The number of female Chief Executive Officers (CEOs) in the United States has increased significantly over the past two decades. Using a sample that includes this greater representation of female CEOs, we revisit whether CEO compensation packages reflect the standard agency theoretical prediction that CEOs who are more (less) risk-averse should be incentivized to take on greater (less) risk. Our findings are at odds with these predictions, as we provide evidence that the well-documented gender difference in risk tolerance among CEOs is reflected in their compensation packages. While total CEO compensation is roughly equal between men and women, female CEOs earn significantly higher salaries, especially at larger firms.

Female Chief Marketing Officers: When and Why Do Their Marketing Decisions Differ from Their Male Counterparts’?

Firms have appointed a significant number of female chief marketing officers (CMOs) over the past decade. However, the question of how female CMOs differ from their male counterparts is yet to be explored. This research uses a multimethod approach to examine when and why female CMOs’ marketing decisions differ from those of male CMOs. In Study 1, the authors use secondary data to examine the effect of CMO gender on multiple marketing decisions and find that female CMOs make less risky decisions. Further, the authors find evidence that female CMOs’ risk-taking behavior is contingent on structural, organizational, and environmental factors (CEO gender, relative firm performance, and demand uncertainty). In Study 2, the authors employ the MarkStrat simulation, in which participants assume the role of CMO, to test the main finding from Study 1 in a controlled setting and provide evidence for the differential effect of gender on radical versus incremental new product introductions. In Study 3, the authors examine survey data to find evidence for the underlying mechanisms (overconfidence, failure avoidance orientation, and scrutiny) behind female CMOs’ lesser risk-taking behavior.

How to secure an innovation grant for firms in new industries? Gender and resource perspectives

PurposeResearch on financing for entrepreneurship has consolidated over the last decade. However, one question remains unanswered: how does the combination of external finance, such as equity and debt capital, and internal finance, such as working capital, affect the likelihood of grant funding over time? The purpose of this study is to analyse the relationship between different sources of financing and firms' ability to fundraise via innovation grants and to examine the role of female chief executive officer (CEO) in this relationship. Unlike equity and debt funding, innovation grants manifest a form of innovation acknowledgement and visibility, recognition of potential commercialization of inovation.Design/methodology/approachThe authors use firm-level financial data for 3,034 high-growth firms observed in 2015, 2017 and 2019 across 35 emerging sectors in the United Kingdom (UK) to test the factors affecting the propensity of high-growth firms to secure an innovation grant as a main source of fundraising for innovation during the early stages of product commercialization.FindingsThe results do not confirm gender bias for innovation fundraising in new industries. This contrasts with prior research in the field which has demonstrated that access to finance is gender-biased. However, the role of CEO gender is important as it moderates the relationship between the sources of funding and the likelihood of accessing the grant funding.Research limitations/implicationsThis study does not analyse psychological or neurological factors that could determine the intrinsic qualities of male and female CEOs when making high-risk decisions under conditions of uncertainty related to innovation. Direct gender bias with regards to access to innovation grants could not be assumed. This study offers important policy implications and explains how firms in new industries can increase their likelihood of accessing a grant and how CEO gender can moderate the relationship between availability of internal and external funding and securing a new grant.Social implicationsThis study implicates and empirically demonstrates that gender bias does not apply in fundraising for innovation in new industries. As female CEOs represent various firms in different sectors, this may be an important signal for investors in new product development and innovation policies targeting gender bias and inclusion.Originality/valueThe authors draw on female entrepreneurship and feminist literature to demonstrate how various sources of financing and gender change the likelihood of grant funding in both the short and long run. This is the first empirical study which aims to explain how various internal and external sources of finance change the propensity of securing an innovation grant in new industries.

Nurse and firefighter.

The first female Chief of the Toledo Fire and Rescue Department is also an RN. Medical calls exceed firefighting calls to fire and rescue departments nationwide. This article highlights her nursing and firefighting career to inspire other nurses toward this and other nontraditional career paths.

Spanish CEOs' perceptions in complex situations: an analysis from a gender perspective

PurposeThe aim of this paper is to provide empirical evidence of discrepancies in certain management-related business factors in complex situations from a gender perspective.Design/methodology/approachThe study examined whether there are any differences in the characteristics of Spanish companies run by men and women and how male and female chief executive officers (CEOs) perceive critical situations such as the COVD-19 pandemic. To answer the research questions, the survey carried out by the Ibero-American Observatory of Small and Medium-Sized Enterprises (FAEDPYME) in 2021 was used. The final sample consisted of a total of 1,532 small and medium-sized enterprises.FindingsThe main results show that female CEOs are more likely to have a university education than male CEOs, but they run smaller companies in Spain. On the other hand, they are more risk averse and evaluate the impact of complex and risky situations more negatively.Research limitations/implicationsThe findings open up new research questions. This is a cross-sector study, but are there differences in behaviour between sectors? The view of the crisis is negative, but which types of companies have been strengthened?, finally, do other countries have similar results?Originality/valueThe originality and value of this document lies in the fact that it makes an interesting contribution to the open debate on the management of complex situations from a gender perspective.

Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance

PurposeThis study aims to investigate the relationship between corporate tax avoidance and stock price crash risk and the moderating effects of corporate governance.Design/methodology/approachThis study investigates the relationship between corporate tax avoidance and stock price crash risk using the sample consisting of listed firms in Vietnam for the period of 2011–2020 using panel regressions.FindingsThe authors find that there is a positive relationship between tax avoidance and stock price crash risk. Foreign ownership weakens the impacts of tax avoidance on stock price crash risk, while managerial ownership strengthens the impacts. Female Chief Executive Officers (CEOs) and female chairpersons weaken this relationship. Board gender diversity and state ownership have insignificant moderating impacts.Practical implicationsThese findings could help the stock market build better internal monitoring mechanisms to reduce the impacts of tax avoidance on future stock price crash risk. Investors can recognize the characteristics of corporate governance, especially foreign ownership, managerial ownership, female CEOs and female chairpersons when making investment decisions. The policy makers should consider policies to attract foreign investment and support women entrepreneurship.Originality/valueThis paper contributes to the literature on the impacts of tax avoidance on stock price crash risk in emerging countries. This paper is the first to investigate the influence of corporate governance mechanisms including state ownership, foreign ownership, female CEOs and chairpersons and board gender diversity on this relationship.

An assessment of female executives’ influence on bank performance in Indonesia based on critical mass theory

This study examines how female executives affect bank performance in Indonesia’s emerging market. It also investigates whether a critical mass of females on the board of management impacts bank performance. The sample was obtained from 29 banks, which covers 64.5% of publicly listed banks in Indonesia, for the observation period of 2010–2019. This study employs balanced panel data regression analysis, including the year fixed effect. Five surrogate indicators were used for female executives: female Chief Executive Officer (CEO), female Chief Financial Officer (CFO), the presence of females on the board of management, the proportion of female members on the board of management, and the number of female members on the board of management. Critical mass is reached if there are three or more female members on the board of management. The findings suggest that female executives do not significantly impact bank performance. The critical mass suggests a similar result. The findings are consistent and robust for the additional analysis using a lagged independent variable. Nevertheless, the results show that female CEOs positively impact return on assets (ROA) and return on equity (ROE). Empirical findings in Indonesia suggest that female executives do not affect bank performance. The absence of this effect is likely due to unique aspects of Indonesian culture and the structural ownership of firms. However, female CEOs were shown to improve ROE. The findings imply that females are more risk-averse decision makers than males and tend to choose lower-risk investments, which can improve ROA and ROE.

How do females in top executive positions influence firm profitability: new insight from non financial firms on Ghana Stock Exchange

Purpose This study aims to investigate the impact of female chairperson, female chief executive officer and presence of females on boards on listed firms’ profitability using data from Ghana. Design/methodology/approach This study used ordinary least square estimation and generalized least square (i.e. fixed and random effect estimation techniques) estimation on the data of 15 nonfinancial listed firms on Ghana Stock Exchange between 2010 and 2020. Findings The results show that while males dominate corporate executive positions in listed nonfinancial firms in Ghana, females serving in top corporate executive positions like chief executive officer, board chairperson and female board membership positively impact listed firms’ performance in the form of return on assets, net profit margin and gross profit margin. These findings are consistent even when year and industry effects are controlled for. This suggests that enacting policies at the national and firm levels to encourage female participation in corporate executive roles/positions are critical for promoting firm performance. Originality/value This study extends extant empirical literature on the economic role of female executives in firm performance from the developing context of Ghana. With calls in literature for more studies on the subject matter in varied contexts and conditions, this study takes the discussion a step further by investigating whether the gender of those in positions such as board chairperson and chief executive officer matters in firm profitability in Ghana.

Female CEO and board composition: A gender rivalry approach to family firms

This paper investigates the impact of female chief executive officers (CEOs) on women’s representation on the board of directors (BoD). As scholars maintain that positive effects exerted by board gender diversity on firms’ performance depend on the achievement of a critical mass, we focus on the role of female CEOs as a determinant of the number of appointed women in the context of family businesses, exploring how the persistence of gender stereotypes, along with homosocial reproduction and individual socio-emotional wealth (SEW) objectives affect tokenism phenomena. We test our hypothesis on a sample of 70 listed family firms in the 2014–2021 period. Consistently with our prediction, our findings provide evidence of a negative association between female CEOs and the number of female directors, thus suggesting that family businesses’ dominant male coalitions and SEW matters may hinder female inclusiveness to avoid inter-group dysfunctionalities in decision-making.

Women leading the audit process and audit fees: A European study

This study investigates if a gender effect exists on the audit fees associated with the presence of women in roles closely related to the audit process. The analysis is based on the largest European corporations studied between 2016 and 2018. The results show that firms with female chief financial officers and more female directors on the audit committee pay significantly lower audit fees than other firms. However, the results for the remaining gender variables (audit partner, chair of the audit committee, and chief executive officer) do not show any association. Additionally, we find that accounting expertise drives the association between female directors and audit fees. Therefore, neither non-expert female directors nor, more surprisingly, female directors who are labelled as financial experts, have any significant effects on audit fees. Another interesting finding is that the gender variables provide significant results when they are observed in more gender egalitarian contexts, though not in less egalitarian settings. These results have interesting implications at various levels.

The adoption of human resource practices to support employees affected by intimate partner violence: Women representation in leadership matters

AbstractIntimate partner violence (IPV) is a global public health issue that negatively impacts organizations and their employees. Research suggests that organizations can play a supportive role to lessen this negative impact. However, it has been relatively silent on the conditions under which organizations choose to play such a role. Integrating social role and critical mass perspectives, we examine the extent to which organizations adopt human resource (HR) practices to support employees affected by IPV. Specifically, we argue that organizations are more likely to adopt IPV‐related HR practices when they are led by female Chief Executive Officers (CEOs) and Top Management Teams (TMTs) with more female members. Furthermore, we argue that when women's representation reaches a critical mass plateau, appointing more women in TMTs has no incremental impact, and this non‐linear relationship moderates the CEO gender effect. Overall, we found support for our hypotheses based on a survey study of HR professionals from 414 Australian organizations (Study 1) and an archival study using 2 years of the Workplace Gender Equality Agency data from 4186 Australian organizations (Study 2). Theoretical and practical implications on the influence of gender configurations in leadership positions on the adoption of diversity, equity, and inclusion‐related HR practices are discussed.

Female CEOs and the compensation of other top managers.

We study the implications of having a female chief executive officer (CEO) for the compensation levels of other top managers of a firm. Extant theoretical perspectives, such as social identity theory, gendered notions of firm status, and loss of diversity benefits, among others, make competing predictions about the effect of having a female, as opposed to a male, CEO: (a) that only female top managers may earn more, (b) that both female and male top managers may earn less, and (c) that only female top managers may earn less. Using over 20 years of data on the top management teams (TMTs) of the largest 1,500 U.S. firms, we find that women (but not men) in top management earn significantly less with a female CEO than what they would have earned with a male CEO in a given year within a particular firm. We theorize that these results are consistent with the argument that a female top manager confers diversity benefits on her firm, which become redundant when there is a female CEO. Thus, the focal female top manager is paid less with a female CEO than what she would have earned with a male CEO. Our post-hoc test related to the effect of the percentage of female members on the TMT provides further empirical evidence for the diversity benefits perspective. This study contributes to research on TMTs, gender, and compensation and should inspire further work investigating the psychological mechanisms through which CEO gender influences TMT compensation. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Gender diversity and bank risk-taking: female directors and executives

PurposeThe authors investigate how a gender-diverse board, a gender-diverse executive team, or a female chief executive officer (CEO) impact bank balance sheet and equity risk.Design/methodology/approachUsing panel data of U.S. bank holding companies over the period of 1992–2019, the authors conduct panel regressions with bank and year-fixed effects to analyze how female directors, female executives, and female CEOs impact a wide range of bank risk measures, controlling for the bank, board and executive characteristics.FindingsThe authors find female directors significantly reduce all types of risk. Female executives reduce some balance sheet risk but have an insignificant effect on bank equity risk. However, the presence of female CEOs does not significantly reduce bank risk-taking. During financial crises, female CEOs even increase equity risk.Social implicationsThe findings are important to shed light on the ongoing debate on how gender quota policy could be efficiently used to balance the need for gender diversity while ensuring corporate performance. It could also improve social welfare by guiding proper public policy to ensure the efficient use of social labor capital and curb banks' excessive risk-taking incentives.Originality/valueThe authors provide the first empirical evidence demonstrating that female directors and female executives in the banking industry have different impacts on bank risk-taking. The authors also provide the first empirical evidence that female leaders have a different impact on two different types of risks: balance sheet and equity risk. The study is also the first to analyze the impact of female executives over multiple financial crises.

Pengaruh Board Diversity Terhadap Konservatisme Akuntansi (Studi Empiris Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia 2017-2019)

This study aims to examine and obtain empirical evidence of the influence of female Chief Executive Officer (CEO), female Chief Financial Officer (CFO), female Board of Commissioners on accounting conservatism in all companies listed on the IDX in 2017-2019. The sample of this research is all companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2019 period. The sample selection in this study using purposive sampling method, obtained 124 companies and multiplied during the year of the study, so that the total sample in this study was 372. The dependent variables used in this study were accounting conservatism, female CEO, female CFO, and female Board of Commissioners as independent variable. Tests in this study using analysis tools E-Views (Econometric Views) and for data analysis in this study using linear regression analysis. The results of this study indicate that female CEOs, female CFOs, and female Board of Commissioners have no significant effect on accounting conservatism

Role of female leadership in corporate innovation: a systematic literature review

PurposeThis study aims to explore how female leadership contributes to corporate innovation through a systematic literature review. The authors provide a framework based on empirical studies to provide a broader perspective of corporate innovation based on female leadership.Design/methodology/approachTo understand the most recent developments in leadership, a thorough literature study is carried out to discover the antecedents of women’s leadership and their contribution to corporate innovation, with an emphasis on literature published between 2013 and 2022. An intensive research plan was developed, and 1,120 outcomes were obtained. Finally, 35 studies met the criteria for inclusion in the study. A comprehensive and systematic approach is followed, with the goal of not just summarizing current empirical studies on the subject, but also including an aspect of analytical critique besides organizational policies.FindingsThe findings show that organizations with female chief executive officers (CEOs) are more likely to innovate. When female CEOs come on board, organizations are more likely to engage in creative activities. Research also reveals that female CEOs who head organizations are more likely to engage in new and creative business practices that are environment friendly. Moreover, developing nations are encouraged to accelerate the adoption of structural transformation initiatives that would provide women with access to information and technologies.Research limitations/implicationsThis research is limited to literature published between 2013 and 2022.Practical implicationsIt is important to select the organizational response to board female representation institutional logic to reflect the intended sort of performance. Organizational stakeholders were unfavorable to female leadership, implying that such perceptions harm women but benefit men. Prior research emphasizes distinctions in leadership effectiveness between males and females, diverting attention elsewhere from examining the reasons that generate differences among executives in organizations. For policymakers to promote more women in top positions based on female knowledge, skills and abilities (KSAs), they need to understand how firms deviate from traditional standards. In addition, it is crucial to pay attention to how male and female leaders are supported by their followers.Social implicationsThis research offers organizations a holistic view regarding female leadership and helps them understand their contribution in innovation.Originality/valueIn modern, dynamic and technological landscapes, female participation is one of the key aspects that corporates consider to sustain and drive growth. That is why, modern societies without women’s contribution to economic growth and innovation are deemed incomplete. The current study highlights their contribution to the economy. Literature also indicates that the presence of female leadership on boards impacts corporate innovation, as well as financial performance and contextual factors.c