Women in Leadership: An Analysis of the Gender Pay Gap In ASX‐Listed Firms

25 Pages Posted: 6 Sep 2017

See all articles by Marion R. Hutchinson

Marion R. Hutchinson

Queensland University of Technology - QUT Business School

Janet Mack

Queensland University of Technology - School of Accountancy

Peter Verhoeven

Queensland University of Technology - QUT Business School; Financial Research Network (FIRN)

Date Written: September 2017

Abstract

This study provides evidence that after several decades of fighting for equal pay for equal work, an unexplained gender pay gap remains amongst senior executives in ASX‐listed firms. After controlling for a large suite of personal, occupational and firm observables, we find female senior executives receive, on average, 22.58 percent less in base salary for the period 2002–2013. When executives are awarded performance‐based pay, females receive on average 16.47 percent less in cash bonus and 18.21 percent less in long‐term incentives than males. The results are robust to using firm fixed effects and propensity‐score matching. Blinder–Oaxaca decomposition results show that the mean pay gap cannot be attributed to gender differences in attributes, including job titles. Instead, the results point to differences in returns on firm‐specific variables, in particular firm risk.

Keywords: Executive remuneration, Gender, Pay gap, Performance‐based pay

Suggested Citation

Hutchinson, Marion R. and Mack, Janet and Verhoeven, Peter, Women in Leadership: An Analysis of the Gender Pay Gap In ASX‐Listed Firms (September 2017). Accounting & Finance, Vol. 57, Issue 3, pp. 789-813, 2017. Available at SSRN: https://ssrn.com/abstract=3032158 or http://dx.doi.org/10.1111/acfi.12178

Marion R. Hutchinson (Contact Author)

Queensland University of Technology - QUT Business School ( email )

GPO Box 2434
Brisbane, Queensland 4001
Australia
0417548273 (Phone)

Janet Mack

Queensland University of Technology - School of Accountancy ( email )

2 George Street
Brisbane, Queensland 4000
Australia

Peter Verhoeven

Queensland University of Technology - QUT Business School ( email )

GPO Box 2434
Brisbane, Queensland 4001
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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