At the table but can not break through the glass ceiling:Board leadership positions elude diverse directors

Field, Laura Casares; Souther, Matthew E.; Yore, Adam S.

doi:10.1016/j.jfineco.2020.04.001

Cited by 116 publications

(56 citation statements)

References 69 publications

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“…If this argument is correct, then one could expect board gender diversity to actually have a negative effect on company performance. However, Peterson GM 35,2 and Philbot ( 2007) and Field et al (2019) argue and demonstrate that this is not the case. This point is especially important in the Turkish setting because Turkey is a country which ranks very poorly in terms of gender equality.…”

Section: Theory and Research Questionsmentioning

confidence: 99%

Female board members: the effect of director affiliation

Arioglu

2020

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Purpose This study aims to investigate whether female directors have an effect on company financial performance in a patriarchal emerging country that has a collectivistic culture with a substantial gender equality gap and is characterized with a paternalistic management culture. In addition, it aims to investigate whether the affiliations of female directors matter performance-wise in a setting where the majority of the companies are ultimately controlled by large business groups including families. Design/methodology/approach The current study uses a unique hand-collected data set that covers all non-financial public companies quoted at the Borsa Istanbul between the years 2009 and 2017. To investigate the relationships between the presence and ratio of female directors and company financial performance, the current study uses the pooled ordinary least squares method, as well as the firm-fixed effects method to overcome potential omitted variables problems and various generalized method of moments methods to overcome potential reverse causality problems. Findings The findings of the current study demonstrate that the presence and percentage of female directors both have a positive effect on company financial performance in a cultural setting where the opposite might be expected. They also present evidence suggesting that the effect becomes larger as the level of the independence of female directors becomes greater. Originality/value The current study demonstrates that the presence of female directors on boards has a positive effect on company financial performance, even in a cultural setting that is very different from those of countries where the majority of previous studies on female directors are conducted on. In addition, it demonstrates how company financial performance varies with the level of the affiliation of female directors.

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Section: Theory and Research Questionsmentioning

confidence: 99%

Female board members: the effect of director affiliation

Arioglu

2020

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“…Males are hired and promoted based on their potential and have better access to organization hierarchies through mentoring or social networks due to homophily[14] (Bell, 2006;Bharath et al, 2009). Field et al (2020) study the labor market effects of gender and race. Despite the increase in diverse (female and minority) board representation, Field et al (2020) find that diverse directors are significantly less likely to serve in leadership positions despite possessing stronger qualifications than non-diverse directors.…”

Section: Evidence From Chinese Banksmentioning

confidence: 99%

“…Field et al (2020) study the labor market effects of gender and race. Despite the increase in diverse (female and minority) board representation, Field et al (2020) find that diverse directors are significantly less likely to serve in leadership positions despite possessing stronger qualifications than non-diverse directors. Fan et al (2007) show that in China, women are more likely to be appointed to boards for their specialized expertise than for their managerial or political roles.…”

Section: Evidence From Chinese Banksmentioning

confidence: 99%

“…Oliver Wyman [2] notes that in 150 of the world's major financial institutions, 4% of CEOs and 13% of executive committee members are women while over a third remain entirely male. Although women and minorities serve on the board, they have lower representation in board leadership roles relative to white males (Field et al, 2020). According to the 2014 Catalyst [3] census, only 1.4% of the CEOs in the S&P 500 financial and insurance sectors are women [4].…”

Section: Introductionmentioning

confidence: 99%

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CEO gender, power and bank performance: evidence from Chinese banks

Ting

2021

JEC

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Purpose This study aims to investigate the relations between CEO gender, power and bank performance. First, this study examines the relation between CEO gender and power. Do female CEOs possess less power than male CEOs? As women reach the top, do they hold similar or even higher levels of power as men? Second, this study investigates the relation between the CEO gender and bank performance. How do female CEOs perform? Is the relation between gender and performance subject to CEO power? Design/methodology/approach This study uses the following three performance measures: ROA, pre-tax ROA and pre-provision profit over assets. This study follows Finkelstein’s (1992) classifications and adopt five variables to measure the four dimensions of CEO power: duality and compensation share measure structural power; ownership captures ownership power; number of functional areas measures the power of expertise; and elite education captures prestige power. Logit model, ordinary least squares regression and quantile regression methods are used in the analysis. Findings In a sample of Chinese banks, female CEOs are found to have similar power and performance as male CEOs. As women reach the top, they hold higher ownership and greater prestige power than men. Female CEOs even outperform male CEOs in non-state dominated banks. Female CEOs show their impact through their power: those with higher compensation shares or greater power are positively related to bank performance. Originality/value Overall, the results show that as women reach the top, they hold a higher level of power than men. As females break through the glass ceiling, they perform better than males. Moreover, female CEOs show their impact through their power. Female CEOs who overcome the barriers are less traditional and more self-directed than their peers.

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“…Compensation of women and minorities, including in leadership positions, is another area that now receives considerable attention. There is an ongoing academic debate on whether women and minorities in leadership roles are underpaid (as in recent papers by Leslie et al , 2017; Gupta et al , 2018; and Field et al , 2020). A smaller, emerging area of empirical research looks at whether female CEOs affect compensation of employees (e.g.…”

Section: Introductionmentioning

confidence: 99%

CEO-to-employee pay ratio and CEO diversity

Alan

Bardos

Shelkova

2020

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PurposeThe motivation behind Section 953(b) of Dodd–Frank Act was the increasing pay inequality and supposed CEOs' rent extraction. It required public companies to disclose CEO-to-employee pay ratios. Using the ratios reported by S&P 1500 firms in 2017–18, this paper examines whether companies led by women and minority CEOs have lower ratios than those led by white male CEOs.Design/methodology/approachThis paper uses multivariate regression along with a matched sample analysis to examine whether female and minority CEOs have higher CEO-to-employee pay ratios compared to male and white CEOs, controlling for other determinants of pay ratios.FindingsResults indicate that CEO-to-employee pay ratios are 22–28% higher for female CEOs compared to their male counterparts, controlling for other determinants of pay ratios. There is, however, no statistically significant difference between the pay ratios of minority vs white male CEOs. Minority female CEOs have lower CEO-to-employee pay ratios than white female CEOs. Consistent with literature, larger and more profitable firms have higher CEO-to-employee pay ratios.Originality/valueWhile prior studies on determinants of CEO-to-employee pay ratios have used either industry-level or self-reported data for a small subset of firms (resulting in selection bias), this paper uses firm-level data that are available for all S&P 1500 firms due to new disclosure requirements due to the Dodd–Frank Act Section 953(b). Moreover, this is the first paper to test whether gender or ethnicity of a CEO affects within-firm pay inequality.

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At the table but can not break through the glass ceiling:Board leadership positions elude diverse directors

Cited by 116 publications

References 69 publications

Female board members: the effect of director affiliation

Female board members: the effect of director affiliation

CEO gender, power and bank performance: evidence from Chinese banks

CEO-to-employee pay ratio and CEO diversity

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