Earnings forecasts of female CEOs: quality and consequences

This study examines the voluntary disclosure of earnings forecasts by female CEOs. We find that in the backdrop of increased pressure to perform from investors and other stakeholders, female CEOs tend to issue more earnings forecasts than male CEOs, and those forecasts are more accurate. We also find that while financial analysts generally prefer to follow companies headed by male CEOs, female CEOs’ efforts to issue accurate earnings forecasts pay off, as these efforts help them close the analyst coverage gap. We provide complementary evidence on the disclosure efforts of female CEOs with regard to updates to the forecast and the 10-K report. Lastly, we show that financial analysts rely more on the earnings forecasts of female CEOs, possibly because they recognize female CEOs’ superior forecasting quality. Our results are robust to the use of alternative research designs, including difference-in-difference, propensity score matching, and entropy balancing. Overall, our study documents gender differences in voluntary disclosure by senior management.

She-E-Os and innovation: do female CEOs influence firm innovation?

PurposeThis paper empirically investigates whether female CEOs (She-E-Os) have an effect on firm innovation among Chinese listed firms based on patent data. This study also delved further by looking at whether the internal corporate environment moderates the effect of female CEOs on innovation, that is, state ownership. Finally, this study investigates an additional test of financial constraints to examine whether financial constraints also moderate the impact of female CEOs on firm innovation.Design/methodology/approachThis study used the data of all A-share listed companies on the Shanghai and Shenzhen stock exchanges for the period from 2008 to 2017. The authors use ordinary least squares regression as a baseline methodology, along with firm-fixed effect, lagged measure of female CEOs, alternative measures of innovation, Heckman two-step model and negative binomial regression to check and control the possible issue of endogeneity.FindingsThe authors’ findings show that CEO gender plays an important role in producing higher levels of innovation output by improving the governance structure. However, female CEOs have no effect on state-owned enterprises' (SOEs) innovation activities, which suggests that the main goal of SOEs is achieving sociopolitical objectives. Furthermore, female CEOs' influence on innovation output is weaker in firms with financial constraints.Social implicationsThis study adds to the emerging global discussion on gender diversity. Many legislative bodies require a quota for women on corporate boards due to gender inequality. This study's findings reinforce such guidelines by emphasizing the economic benefits of including women in top management positions.Originality/valueThis study provides new insights by highlighting the role of female CEOs in increasing firms' innovation activities. Additionally, this study provides evidence on whether the internal corporate environment (state ownership and financial constraints) moderates female CEOs' effect on innovation.

The Impact of Female Directors on Board, and Female CEO on Firm Performance: Empirical Evidence from Emerging Economy

Purpose: As per agency theory prospective, board gender diversity enhances the corporate leadership structure which mitigates agency conflicts among stakeholders. Therefore, this study investigates the impact of female directors on board, and female CEOs on firm performance. We also uses board size, and board independence as board level control, while leverage, firm size, capital expenditure & tangibility as firm level control. Design/Methodology/Approach: The study uses a panel data starting from 2005 to 2020 on annual basis. To resolve endogeneity and unobserved heterogeneity problems in panel data analysis, study uses static (fixed effect, & random effect) and dynamic (GMM) estimation techniques in Pakistan. Findings: Result shows the positive impact of female directors on board and female CEOs on firm performance. These findings are robust under alternative measures of firm performance. Implications/Originality/Value: The study suggests that female representation and female CEOs are the important attributes to enhance firm performance. Additionally, females are performing a significant role through monitor and control for excellent corporate leadership structure. Furthermore, this is the first study of its kind which analyzes this relationship in the emerging equity market of Pakistan.

Female and environmental disclosure of family and non-family firms. Evidence from India

Purpose This study aims to use the gender socialization theory, critical mass theory and legitimacy theory to examine the female gender and environmental disclosure of family and non-family-controlled firms in India. Design/methodology/approach A sample size of 783 and 177 firm-year observations for family and non-family-controlled firms, respectively, between 2009 and 2020 uses descriptive statistics, a test of difference in means and panel regression with random effect assumptions for data interpretation. Findings The descriptive statistics show a significant mean difference between family-controlled firms and non-family-controlled firms in India. The first findings show that female chief executive officers (CEOs) and CEO duality have a positive and statistically significant association with environmental disclosure in a family-controlled firm but not in non-family-controlled firms in India. The second findings show that independent female directors have no significant association with environmental disclosure of family and non-family firms in India. The fourth findings with critical mass theory confirm the insignificant association of female directors on environmental disclosure of family and non-family firms in India. The results are robust to controlling firm-level variables. Practical implications Firms in the Indian context, through this study, assure stakeholders that family firms are better at improving stakeholder’s expectation of environmental accountability than non-family firms, especially where female CEOs are in charge. Originality/value This study adds the family perspective of the relationship between female CEOs and the environmental disclosure of listed firms in India. Also, female CEO duality and environmental disclosure add novelty to the research studies on gender and environmental disclosure.

Pressure to perform: female CEOs and firm community engagement

PurposeThis study examines the impact of female CEO on firm community engagement. By drawing on the stakeholder-agency paradigm, the author proposes that female CEOs feel more pressure to deliver favorable firm performance, thus resulting in less community engagement in firms with female CEOs. The author also examines circumstances surrounding the CEO as boundary conditions that can promote the extent that female CEOs engage in community initiatives.Design/methodology/approachThe author collected panel data on a sample of firms listed in the S&P 500 index during the years 2009–2013. The author tested the hypotheses using firm fixed-effects models.FindingsThe results show that firms with female CEOs pursue less community engagement. CEO career horizon and CEO unexercisable stock options are boundary conditions that weaken the negative relationship between female CEOs and community engagement, while board independence does not have a significant moderating effect.Originality/valueThis study sheds light on the roles of female CEOs on firm community engagement as a distinct firm strategic action. Furthermore, this study provides a better understanding of the relationship by examining different factors that can promote community engagement by female CEOs, which include CEO career horizon and compensation incentive.

Do female leaders influence bank profitability and bank stability? Evidence from Vietnamese banking sector

A diverse board has been seen as an important factor contributing to the success andsustainability of a company. Therefore, policies to enhance the diversity of the boards havebeen implemented in many countries around the globe. However, previous findings on theimpact of female leaders on firm performance still remain inconclusive. Using a dataset of 20Vietnamese commercial banks over the period from 2013 to 2019, this paper examines whether the gender of the bank leaders such as CEOs or members of Management Team (MT), Board of Directors (BOD) have an impact on bank profitability and bank stability in Vietnam. Our findings suggest that banks with female CEOs tend to be more profitable and more stable than those with male CEOs. However, more women appointed to MT do not necessarily result in more profitable or more stable banks. More interestingly, the presence of women on banks’ board of directors implies lower profitability and more vulnerability for banks. Obtained findings imply important bank governance policies toward better performance and stability for commercial banks in Vietnam. Keywords: gender diversity; bank profitability; bank stability; female leadersJEL Classification Codes: G21, G32, M14, J16, J24