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Does cooperation among women enhance or impede firm performance?

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  • Xing, Lu
  • Gonzalez, Angelica
  • Sila, Vathunyoo

Abstract

Based on the notion that women cooperate more with women than with men, we investigate whether women managers work more effectively when monitored by women directors. We find that when a firm has women as its top managers, its accounting profitability increases with the proportion of women on the board of directors. However, the improvement in profitability is associated with earnings management. We show that women are likely to be appointed to precarious leadership positions, which puts pressure on them to ameliorate the weak earnings performance. Finally, consistent with the interaction between women resulting in an unfavourable response from investors, we document a negative stock market reaction to the appointment of female top managers in the presence of women on the board.

Suggested Citation

  • Xing, Lu & Gonzalez, Angelica & Sila, Vathunyoo, 2021. "Does cooperation among women enhance or impede firm performance?," The British Accounting Review, Elsevier, vol. 53(4).
  • Handle: RePEc:eee:bracre:v:53:y:2021:i:4:s0890838920300561
    DOI: 10.1016/j.bar.2020.100936
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    More about this item

    Keywords

    Female interaction; Top management; Board of directors; Firm performance; Glass cliff;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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