Abstract

http://ssrn.com/abstract=1556449
 
 

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Skirting The Issues? Experimental Evidence Of Gender Bias In IPO Prospectus Evaluations


Lyda S. Bigelow


University of Utah - David Eccles School of Business

Leif Lundmark


University of Utah - Department of Management

Judi McLean Parks


Washington University in Saint Louis - John M. Olin Business School

Robert Wuebker


University of Utah - David Eccles School of Business

October 23, 2011


Abstract:     
Given that women executives are present in the top management teams of IPO firms in increasing numbers, the lack of female-led IPO firms is a curious fact, especially since women-owned private businesses represent almost half of the new businesses formed in the United States, with patterns of founding similar to male-owned businesses. It hints at a potentially larger problem - a gender-based capital gap for new ventures. Given the empirical evidence suggesting a positive association between the presence of female executives and firm performance, we test whether investor perceptions are aligned with these empirical patterns. Using a sample of MBA students we construct a simulated initial public offering (IPO) manipulating the gender demographics of the top management team. Our results suggest that female CEOs may be disproportionately disadvantaged in their ability to attract growth capital when all other factors are controlled. Despite identical personal qualifications and firm financials, firms led by females were seen as having a poorer strategic position than those led by males, female Founder/CEOs were perceived as less capable then their male counterparts, and IPOs led by female Founder/CEOs were considered less attractive investments.

Keywords: Entrepreneurship, Top Management Teams, IPO, Gender Bias, Behavioral Finance

JEL Classification: M13, C91, G11, G24

working papers series


Not Available For Download

Date posted: February 21, 2010 ; Last revised: August 31, 2012

Suggested Citation

Bigelow, Lyda S. and Lundmark, Leif and McLean Parks, Judi and Wuebker, Robert, Skirting The Issues? Experimental Evidence Of Gender Bias In IPO Prospectus Evaluations (October 23, 2011). Available at SSRN: http://ssrn.com/abstract=1556449 or http://dx.doi.org/10.2139/ssrn.1556449

Contact Information

Lyda S. Bigelow
University of Utah - David Eccles School of Business ( email )
1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States
801-585-3471 (Phone)
Leif Lundmark
University of Utah - Department of Management ( email )
Salt Lake City, UT 84112
United States
Judi McLean Parks
Washington University in Saint Louis - John M. Olin Business School ( email )
One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States
314-935-7451 (Phone)
314-935-6359 (Fax)
HOME PAGE: http://www.olin.wustl.edu/faculty/mcleanparks/
Robert Wuebker (Contact Author)
University of Utah - David Eccles School of Business ( email )
1645 East Campus Circle Drive
Salt Lake City, UT 84112-9304
United States
HOME PAGE: http://about.me/rwuebker
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