You're Fired! Gender Disparities in CEO Dismissal

Forthcoming, Journal of Management

48 Pages Posted: 11 Nov 2018

See all articles by Vishal K. Gupta

Vishal K. Gupta

University of Alabama - Department of Management

Sandra Mortal

University of Alabama - Culverhouse College of Commerce & Business Administration

Sabatino Silveri

University of Memphis - Fogelman College of Business and Economics

Minxing Sun

Clemson University - Department of Finance

Daniel B. Turban

University of Missouri - Department of Management

Date Written: October 11, 2018

Abstract

CEO dismissals attract considerable attention, presumably because of the visibility, publicity and intrigue that often surrounds the decision to fire the CEO. With the goal of advancing scholarly understanding of CEO dismissals, we examine whether CEO gender influences the likelihood of dismissal. We theorize and find that, ceteris paribus, female CEOs are significantly more likely to be dismissed than male CEOs. Perhaps even more importantly, we find a CEO gender by firm performance interaction such that male CEOs are less likely to be dismissed when firm performance is high (compared to when it is low), whereas female CEOs have a similar level of dismissal likelihood regardless of firm performance. Notably, our results are robust to multiple analytical techniques and various econometric specifications, bringing greater credence to the validity of our findings. Implications and directions for future research are also discussed.

Keywords: CEO dismissal, gender, firm performance

JEL Classification: J16, M12

Suggested Citation

Gupta, Vishal K. and Mortal, Sandra and Silveri, Sabatino and Sun, Minxing and Turban, Daniel B., You're Fired! Gender Disparities in CEO Dismissal (October 11, 2018). Forthcoming, Journal of Management. Available at SSRN: https://ssrn.com/abstract=3264494

Vishal K. Gupta (Contact Author)

University of Alabama - Department of Management ( email )

101 Paul W. Bryant Dr.
Box 870382
Tuscaloosa, AL 35487
United States

Sandra Mortal

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States

Sabatino Silveri

University of Memphis - Fogelman College of Business and Economics ( email )

3675 Central Avenue
Memphis, TN 38152
United States

Minxing Sun

Clemson University - Department of Finance ( email )

Clemson, SC 29634
United States

Daniel B. Turban

University of Missouri - Department of Management ( email )

United States

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