Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 17, 2020 erstellt
Description:
Research Question/Issue: The existing literature documents the possibility that investors may consider female Chief Executive Officers (CEOs) less valuable investment targets due to the prejudice against women. This study examines Female CEOs' contributions to company value in the stock market, measured by Tobin's Q, based on their management performances.Research Findings/Insights: Using a sample of 1,725 nonfinancial U.S. companies, mainly in the S&P 1500, for the period 2007–2018, we find that female CEOs have a negative relationship with Tobin's Q, although they have no significant relationship with aspects of management performance that is significantly related to Tobin's Q. However, female CEOs are negatively related to internal control material weakness as companies' situations become riskier. Correspondingly, the relationship between female CEOs and Tobin's Q becomes positive in riskier situations, meaning that female CEOs contribute to firm value with their risk management performance.Theoretical/Academic Implications: Our study contributes to the previous studies that investors may have negative prejudices regarding females' risk-averse tendencies. Interestingly, our findings imply that female CEOs overcome investors' adverse valuations with their excellent risk management ability in crises. Finally, it also shows that a tendency toward risk aversion does not drive female CEOs' risk management ability.Practitioner/Policy Implications: The empirical evidence from this study can support regulators and boards to understand female CEOs' management performance more deeply. Specifically, our findings suggest that female CEOs do not create inferior management performances that negatively affect company value. In contrast, their risk management ability, which does not stem from risk avoidance tendencies, can be better than male CEOs in crises