Chief Executive Officer Power and Corporate Sexual Orientation Equality

Journal of Behavioral and Experimental Finance, Volume 31, September 2021,100543.

23 Pages Posted: 15 Jul 2021

See all articles by Jennifer Brodmann

Jennifer Brodmann

California State University, Dominguez Hills

Ashrafee T Hossain

Memorial University of Newfoundland (MNU) - Faculty of Business Administration

Abdullah Al Masum

University of Wisconsin - Oshkosh

Meghna Singhvi

Loyola Marymount University - Department of Accounting

Date Written: April 26, 2021

Abstract

We examine the role of Chief Executive Officer (CEO) power in Corporate Sexual Orientation Equality (CSOE), measured by corporate support for employees with alternate sexual orientations (i.e., Lesbian, Gay, Bisexual, Transgender, and Queer – LGBTQ). We find that CEO power is an obstacle to promoting CSOE. Our finding is robust to different model specifications and a battery of endogeneity checks. In the cross-section, we find that the negative association between CEO power and CSOE is more (less) pronounced for firms with weaker (stronger) external monitoring, with a lower (higher) level of transparency, and those located in a more (less) religious county. We also find evidence that the financial market appreciates it when powerful CEOs are less engaged in possibly controversial promotional activities, such as LGBTQ-friendliness.

Keywords: Corporate sexual orientation equality; CEO power; corporate governance

JEL Classification: G30; G34; J10; M14; M41

Suggested Citation

Brodmann, Jennifer and Hossain, Ashrafee T and Masum, Abdullah Al and Singhvi, Meghna, Chief Executive Officer Power and Corporate Sexual Orientation Equality (April 26, 2021). Journal of Behavioral and Experimental Finance, Volume 31, September 2021,100543., Available at SSRN: https://ssrn.com/abstract=3886063

Jennifer Brodmann

California State University, Dominguez Hills ( email )

1000 E. Victoria Street, Carson, CA
Carson, CA 90747
United States

Ashrafee T Hossain (Contact Author)

Memorial University of Newfoundland (MNU) - Faculty of Business Administration ( email )

St. John's, Newfoundland A1B 3X5
Canada

Abdullah Al Masum

University of Wisconsin - Oshkosh

College of Business
800 Algoma Blvd
Oshkosh, WI 54901
United States

Meghna Singhvi

Loyola Marymount University - Department of Accounting ( email )

One LMU Dr.
Hilton 317
Los Angeles, CA 90045
United States

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