CEO Gender and Firm Performance

Journal of Economics and Business, Vol. 67, 55-66, 2013

Posted: 2 Nov 2013

See all articles by João Paulo Vieito

João Paulo Vieito

Scholl of Business Studies - Polytechnic Instituto of Viana do Castelo

Walayet A. Khan

University of Evansville

Date Written: November 1, 2013

Abstract

Based on a panel of US firms over the period of 1992 to 2004, we evaluated whether firms managed by female CEOs exhibit the same performance as firms managed by male CEOs. We also examined if the gender of the CEO affects the firm risk level, and if the compensation packages that boards give to female CEOs have less risky components than those given to male CEOs.

Our results revealed new insights: on average, the gender of the CEO matters in terms of firm performance. When the CEO is a female, the firm risk level is smaller than when the CEO is a male. Another important finding is that boards are not attending to the risk aversion differences between male and female CEOs when they design the compensation packages, especially equity based compensation, which can be understood as an incentive to female CEOs to take risks.

Keywords: Executive compensation

Suggested Citation

Vieito, João Paulo and Khan, Walayet A., CEO Gender and Firm Performance (November 1, 2013). Journal of Economics and Business, Vol. 67, 55-66, 2013, Available at SSRN: https://ssrn.com/abstract=2348824

João Paulo Vieito

Scholl of Business Studies - Polytechnic Instituto of Viana do Castelo ( email )

Avenida Miguel Dantas
Valença, 4930
Portugal

Walayet A. Khan (Contact Author)

University of Evansville ( email )

School of Business Admin 1800 Lincoln Avenue
Evansville, IN 47722
United States
812-479-2869 (Phone)
812-479-2872 (Fax)

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