IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v118y2020icp398-405.html
   My bibliography  Save this article

Female CEO leadership and the likelihood of corporate diversity misconduct: Evidence from S&P 500 firms

Author

Listed:
  • Dadanlar, Hazel H.
  • Abebe, Michael A.

Abstract

Large-scale discrimination lawsuits-as major types of corporate diversity misconduct-pose significant challenges for the reputation and financial well-being of firms. This study explores the role female CEOs play in reducing the likelihood of such lawsuits. Drawing from social role theory, we propose that female CEOs, given their high-profile position, past career experiences and general sensitivity to diversity misconduct, play a critical role in minimizing the occurrences of discrimination lawsuits. We tested our predictions using a panel data from S&P 500 U.S. firms between 2010 and 2015. The findings indicate that firms that are led by female CEOs have a reduced likelihood of discrimination lawsuits. Furthermore, female CEOs can be particularly effective in reducing such lawsuits in firms with more frequent past diversity misconduct. Finally, our findings show that female CEO-led firms with favorable diversity ratings experience reduced likelihood of large-scale discrimination lawsuits. Implications for research and practice are discussed.

Suggested Citation

  • Dadanlar, Hazel H. & Abebe, Michael A., 2020. "Female CEO leadership and the likelihood of corporate diversity misconduct: Evidence from S&P 500 firms," Journal of Business Research, Elsevier, vol. 118(C), pages 398-405.
    • Handle: RePEc:eee:jbrese:v:118:y:2020:i:c:p:398-405
    DOI: 10.1016/j.jbusres.2020.07.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296320304434
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2020.07.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Margarethe F. Wiersema & Harry P. Bowen, 2009. "The use of limited dependent variable techniques in strategy research: issues and methods," Strategic Management Journal, Wiley Blackwell, vol. 30(6), pages 679-692, June.
    2. Ioanna Boulouta, 2013. "Hidden Connections: The Link Between Board Gender Diversity and Corporate Social Performance," Journal of Business Ethics, Springer, vol. 113(2), pages 185-197, March.
    3. David A. Matsa & Amalia R. Miller, 2011. "Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership," American Economic Review, American Economic Association, vol. 101(3), pages 635-639, May.
    4. David Sugarman & Murray Straus, 1988. "Indicators of gender equality for American states and regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 20(3), pages 229-270, June.
    5. S. Trevis Certo & John R. Busenbark & Hyun‐soo Woo & Matthew Semadeni, 2016. "Sample selection bias and Heckman models in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2639-2657, December.
    6. Sanjai Bhagat & John Bizjak & Jeffrey L. Coles, 1998. "The Shareholder Wealth Implications of Corporate Lawsuits," Financial Management, Financial Management Association, vol. 27(4), Winter.
    7. Vella, Francis & Verbeek, Marno, 1999. "Two-step estimation of panel data models with censored endogenous variables and selection bias," Journal of Econometrics, Elsevier, vol. 90(2), pages 239-263, June.
    8. Long-Zeng Wu & Ho Kwan & Frederick Yim & Randy Chiu & Xiaogang He, 2015. "CEO Ethical Leadership and Corporate Social Responsibility: A Moderated Mediation Model," Journal of Business Ethics, Springer, vol. 130(4), pages 819-831, September.
    9. Faccio, Mara & Marchica, Maria-Teresa & Mura, Roberto, 2016. "CEO gender, corporate risk-taking, and the efficiency of capital allocation," Journal of Corporate Finance, Elsevier, vol. 39(C), pages 193-209.
    10. David Tan, 2016. "Making the news: Heterogeneous media coverage and corporate litigation," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1341-1353, July.
    11. Simon Ho & Annie Li & Kinsun Tam & Feida Zhang, 2015. "CEO Gender, Ethical Leadership, and Accounting Conservatism," Journal of Business Ethics, Springer, vol. 127(2), pages 351-370, March.
    12. Bruce Haslem & Irena Hutton & Aimee Hoffmann Smith, 2017. "How Much Do Corporate Defendants Really Lose? A New Verdict on the Reputation Loss Induced by Corporate Litigation," Financial Management, Financial Management Association International, vol. 46(2), pages 323-358, June.
    13. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    14. Sergius Koku, Paul, 2006. "An analysis and the effects of class-action lawsuits," Journal of Business Research, Elsevier, vol. 59(4), pages 508-515, April.
    15. Irena Hutton & Danling Jiang & Alok Kumar, 2015. "Political Values, Culture, and Corporate Litigation," Management Science, INFORMS, vol. 61(12), pages 2905-2925, December.
    16. David A. Matsa & Amalia R. Miller, 2011. "Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership," American Economic Review, American Economic Association, pages 635-639.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saeed, Abubakr & Riaz, Hammad & Liedong, Tahiru Azaaviele & Rajwani, Tazeeb, 2022. "The impact of TMT gender diversity on corporate environmental strategy in emerging economies," Journal of Business Research, Elsevier, vol. 141(C), pages 536-551.
    2. Song, Xiaochuan, 2023. "Gender-based CEO transitions: The role of the Big Three," Finance Research Letters, Elsevier, vol. 52(C).
    3. Kayla Stajkovic & Alexander D. Stajkovic, 2024. "Ethics of Care Leadership, Racial Inclusion, and Economic Health in the Cities: Is There a Female Leadership Advantage?," Journal of Business Ethics, Springer, vol. 189(4), pages 699-721, February.
    4. Ingersoll, Alicia R. & Cook, Alison & Glass, Christy, 2023. "A free solo in heels: Corporate risk taking among women executives and directors," Journal of Business Research, Elsevier, vol. 157(C).
    5. Liliana Nicoleta Simionescu & Ştefan Cristian Gherghina & Hiba Tawil & Ziad Sheikha, 2021. "Does board gender diversity affect firm performance? Empirical evidence from Standard & Poor’s 500 Information Technology Sector," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-45, December.
    6. Tunyi, Abongeh A. & Areneke, Geofry & Tob-Ogu, Abiye & Khalid, Sharif, 2023. "Doing more with more: Women on the board and firm employment," Journal of Business Research, Elsevier, vol. 154(C).
    7. Ayman Issa, 2023. "Shaping a sustainable future: The impact of board gender diversity on clean energy use and the moderating role of environmental, social and governance controversies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2731-2746, November.
    8. Isabel‐María García‐Sánchez & Valentina Minutiello & Patrizia Tettamanzi, 2022. "Gender disclosure: The impact of peer behaviour and the firm's equality policies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 385-405, March.
    9. Albertina Paula Monteiro & Isabel-María García-Sánchez & Beatriz Aibar-Guzmán, 2022. "Labour Practice, Decent Work and Human Rights Performance and Reporting: The Impact of Women Managers," Journal of Business Ethics, Springer, vol. 180(2), pages 523-542, October.
    10. Shakil, Mohammad Hassan, 2021. "Environmental, social and governance performance and financial risk: Moderating role of ESG controversies and board gender diversity," Resources Policy, Elsevier, vol. 72(C).
    11. Liu, Chelsea, 2021. "CEO gender and employee relations: Evidence from labor lawsuits," Journal of Banking & Finance, Elsevier, vol. 128(C).
    12. Daewoung Choi & Hyunju Shin & Kyoungmi Kim, 2023. "CEO’s Childhood Experience of Natural Disaster and CSR Activities," Journal of Business Ethics, Springer, vol. 188(2), pages 281-306, November.
    13. García-Sánchez, Isabel-María & Aibar-Guzmán, Cristina & Núñez-Torrado, Miriam & Aibar-Guzmán, Beatriz, 2023. "Women leaders and female same-sex groups: The same 2030 Agenda objectives along different roads," Journal of Business Research, Elsevier, vol. 157(C).
    14. Michael A. Abebe & Keshab Acharya, 2022. "Founder CEOs and corporate environmental violations: Evidence from S&P 1500 firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1204-1219, March.
    15. Huang, Ruilei & Wei, Jiuchang, 2023. "Does CEOs’ green experience affect environmental corporate social responsibility? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 205-231.
    16. Mehta, Nikhil & Mehta, Anju & Hassan, Yusuf & Buttner, Holly & RoyChowdhury, Sanchita, 2021. "Choices in CDO appointment and firm performance: Moving towards a Stakeholder-based approach," Journal of Business Research, Elsevier, vol. 134(C), pages 233-251.
    17. Sarker, Md Showaib Rahman & Mazumder, Sharif & Amin, Md Ruhul, 2023. "Oil price uncertainty, workplace misconduct, and cash holding," International Review of Financial Analysis, Elsevier, vol. 89(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Clacher, Iain & Garcia Osma, Beatriz & Scarlat, Elvira & Shields, Karin, 2021. "Do commonalities facilitate private information channels? Evidence from common gender and insider trading," Journal of Corporate Finance, Elsevier, vol. 70(C).
    2. Liu, Chelsea, 2021. "CEO gender and employee relations: Evidence from labor lawsuits," Journal of Banking & Finance, Elsevier, vol. 128(C).
    3. Xing, Lu & Gonzalez, Angelica & Sila, Vathunyoo, 2021. "Does cooperation among women enhance or impede firm performance?," The British Accounting Review, Elsevier, vol. 53(4).
    4. Hazan, Moshe & Cohen, Alma & Weiss, David, 2021. "Politics and Gender in the Executive Suite," CEPR Discussion Papers 14513, C.E.P.R. Discussion Papers.
    5. Sule Alan & Gozde Corekcioglu & Mustafa Kaba & Matthias Sutter, 2023. "Female Leadership and Workplace Climate," ECONtribute Policy Brief Series 057, University of Bonn and University of Cologne, Germany.
    6. Veena L. Brown & Erica E. Harris, 2023. "The Association of Female Leaders with Donations and Operating Margin in Nonprofit Organizations," Journal of Business Ethics, Springer, vol. 185(1), pages 223-243, June.
    7. Akshita Arora, 2022. "Gender diversity in boardroom and its impact on firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 735-755, September.
    8. De Amicis, Chiara & Falconieri, Sonia & Tastan, Mesut, 2021. "Sentiment analysis and gender differences in earnings conference calls," Journal of Corporate Finance, Elsevier, vol. 71(C).
    9. Kubo, Katsuyuki & Nguyen, Thanh Thi Phuong, 2021. "Female CEOs on Japanese corporate boards and firm performance," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).
    10. Francis, Bill B. & Hasan, Iftekhar & Hovakimian, Gayane & Sharma, Zenu, 2023. "Gender pay gap in American CFOs: Theory and evidence," Journal of Corporate Finance, Elsevier, vol. 80(C).
    11. Francesco Devicienti & Elena Grinza & Alessandro Manello & Davide Vannoni, 2019. "What Are the Benefits of Having More Female Leaders? Evidence from the Use of Part-Time Work in Italy," ILR Review, Cornell University, ILR School, vol. 72(4), pages 897-926, August.
    12. Servaes, Henri & Lins, Karl & Roth, Lukas & Tamayo, Ane, 2020. "Gender, Culture, and Firm Value: Evidence from the Harvey Weinstein Scandal and the #MeToo Movement," CEPR Discussion Papers 14703, C.E.P.R. Discussion Papers.
    13. Joanna Tyrowicz & Siri Terjesen & Jakub Mazurek, 2017. "All on board? New evidence on board gender diversity from a large panel of firms," GRAPE Working Papers 5, GRAPE Group for Research in Applied Economics.
    14. Saeed, Abubakr & Riaz, Hammad & Liedong, Tahiru Azaaviele & Rajwani, Tazeeb, 2022. "The impact of TMT gender diversity on corporate environmental strategy in emerging economies," Journal of Business Research, Elsevier, vol. 141(C), pages 536-551.
    15. KUBO Katsuyuki & UCHIGASAKI Shigeru & MURASAWA Ryuichi & SUZUKI Keisuke & YAMAUCHI Hirotsugu & SEKO Susumu, 2022. "Top Management Team Reform and Corporate Governance (Japanese)," Discussion Papers (Japanese) 22036, Research Institute of Economy, Trade and Industry (RIETI).
    16. Sudipta Bose & Sarowar Hossain & Abdus Sobhan & Karen Handley, 2022. "Does female participation in strategic decision‐making roles matter for corporate social responsibility performance?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 4109-4156, September.
    17. Datta, Sudip & Doan, Trang & Toscano, Francesca, 2021. "Top executive gender, board gender diversity, and financing decisions: Evidence from debt structure choice," Journal of Banking & Finance, Elsevier, vol. 125(C).
    18. Raddant, Matthias & Takahashi, Hiroshi, 2022. "Interdependencies of female board member appointments," International Review of Financial Analysis, Elsevier, vol. 81(C).
    19. Schopohl, Lisa & Urquhart, Andrew & Zhang, Hanxiong, 2021. "Female CFOs, leverage and the moderating role of board diversity and CEO power," Journal of Corporate Finance, Elsevier, vol. 71(C).
    20. Lucas, Ryley & Gunasekarage, Abeyratna & Shams, Syed & Edirisuriya, Piyadasa, 2021. "Female directors and acquisitions: Australian evidence," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:118:y:2020:i:c:p:398-405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.