Women in Top Management and Agency Costs

24 Pages Posted: 22 Jan 2008 Last revised: 28 Jan 2015

Anthony F. Jurkus

affiliation not provided to SSRN

Jung Chul Park

University of South Florida

Lorraine S. Woodard

affiliation not provided to SSRN

Date Written: February 28, 2008

Abstract

This study investigates gender diversity among the top managers of Fortune 500 firms and its effect on agency costs. The study finds that firms with a greater percentage of female officers present lower agency costs but that the negative relation is not robust when considering the endogeneity of diversity. Moreover, the study finds that external governance influences the relationship. Although increasing diversity does not reduce agency costs for all firms, the evidence shows that diversity is significantly negatively related to agency costs in firms in less competitive markets. The results suggest that increasing diversity in management can have beneficial effects for firms where strong external governance is absent.

Keywords: Gender diversity, Female officers, Agency costs, Corporate governance, Firm performance

JEL Classification: M14, M54, G34

Suggested Citation

Jurkus, Anthony F. and Park, Jung Chul and Woodard, Lorraine S., Women in Top Management and Agency Costs (February 28, 2008). Available at SSRN: https://ssrn.com/abstract=1085109 or http://dx.doi.org/10.2139/ssrn.1085109

Anthony F. Jurkus

affiliation not provided to SSRN ( email )

Jung Chul Park (Contact Author)

University of South Florida ( email )

Tampa, FL 33620
United States
813-974-9680 (Phone)
813-974-3084 (Fax)

HOME PAGE: http://www.usf.edu/business/contacts/park-jung-chul.aspx

Lorraine S. Woodard

affiliation not provided to SSRN

Paper statistics

Downloads
765
Rank
25,214
Abstract Views
2,455