IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v158y2023ics0148296323000644.html
   My bibliography  Save this article

Do female CMOs enhance firm performance? Power matters

Author

Listed:
  • Oh, Kwangwuk
  • Song, Sujin

Abstract

The diversity of top management teams is increasingly being recognized as an important predictor of firm performance. Using upper echelons theory and the literature of innovation and market agility, we posit that having a powerful diverse Chief Marketing Officer (CMO) is related to a positive firm performance. We empirically investigated the gender of the CMO as a variable of increasing diversity in Top Management Team (TMT) in relation to firm performance. We found that having a female CMO with high power in the TMT is highly associated with positive firm performance. This suggests gender diversified powerful CMOs enhance firm performance.

Suggested Citation

  • Oh, Kwangwuk & Song, Sujin, 2023. "Do female CMOs enhance firm performance? Power matters," Journal of Business Research, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:jbrese:v:158:y:2023:i:c:s0148296323000644
    DOI: 10.1016/j.jbusres.2023.113706
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323000644
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.113706?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. Griffin, Dale & Li, Kai & Xu, Ting, 2021. "Board Gender Diversity and Corporate Innovation: International Evidence," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 56(1), pages 123-154, February.
    2. Oh, Kwang Wuk & Kim, Hyun Ah, 2019. "Are inflated domestic credit ratings relative to global ratings associated with peer firms’ investment decisions? Evidence from Korea," Japan and the World Economy, Elsevier, vol. 51(C), pages 1-1.
    3. Naresh Bansal & Kissan Bansal & Minghui Ma & M. Babajide Wintoki, 2017. "Do CMO Incentives Matter? An Empirical Investigation of CMO Compensation and Its Impact on Firm Performance," Management Science, INFORMS, vol. 63(6), pages 1993-2015, June.
    4. James Heckman & Salvador Navarro-Lozano, 2004. "Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 30-57, February.
    5. Du, Ding & Osmonbekov, Talai, 2020. "Direct effect of advertising spending on firm value: Moderating role of financial analyst coverage," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 196-212.
    6. Niamh Brennan & Jacqueline McCafferty, 1997. "Corporate Governance Practices in Irish Companies," Open Access publications 10197/2930, Research Repository, University College Dublin.
    7. Demsetz, Harold & Villalonga, Belen, 2001. "Ownership structure and corporate performance," Journal of Corporate Finance, Elsevier, vol. 7(3), pages 209-233, September.
    8. King, Gary & Nielsen, Richard, 2019. "Why Propensity Scores Should Not Be Used for Matching," Political Analysis, Cambridge University Press, vol. 27(4), pages 435-454, October.
    9. Edeling, Alexander & Srinivasan, Shuba & Hanssens, Dominique M., 2021. "The marketing–finance interface: A new integrative review of metrics, methods, and findings and an agenda for future research," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 857-876.
    10. Beatty, Anne & Liao, Scott & Yu, Jeff Jiewei, 2013. "The spillover effect of fraudulent financial reporting on peer firms' investments," Journal of Accounting and Economics, Elsevier, vol. 55(2), pages 183-205.
    11. Rajeswararao Chaganti & Rakesh Sambharya, 1987. "Strategic orientation and characteristics of upper management," Strategic Management Journal, Wiley Blackwell, vol. 8(4), pages 393-401, July.
    12. Cristian L. Dezsö & David Gaddis Ross, 2012. "Does female representation in top management improve firm performance? A panel data investigation," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1072-1089, September.
    13. Bernile, Gennaro & Bhagwat, Vineet & Yonker, Scott, 2018. "Board diversity, firm risk, and corporate policies," Journal of Financial Economics, Elsevier, vol. 127(3), pages 588-612.
    14. Pravin Nath & Neeraj Bharadwaj, 2020. "Chief marketing officer presence and firm performance: assessing conditions under which the presence of other C-level functional executives matters," Journal of the Academy of Marketing Science, Springer, vol. 48(4), pages 670-694, July.
    15. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    16. Liu, Yonghong & Lei, Lijun & Buttner, E. Holly, 2020. "Establishing the boundary conditions for female board directors’ influence on firm performance through CSR," Journal of Business Research, Elsevier, vol. 121(C), pages 112-120.
    17. Yermack, David, 1996. "Higher market valuation of companies with a small board of directors," Journal of Financial Economics, Elsevier, vol. 40(2), pages 185-211, February.
    18. Peters, Ryan H. & Taylor, Lucian A., 2017. "Intangible capital and the investment-q relation," Journal of Financial Economics, Elsevier, vol. 123(2), pages 251-272.
    19. Ya You & Shuba Srinivasan & Koen Pauwels & Amit Joshi, 2020. "How CEO/CMO characteristics affect innovation and stock returns: findings and future directions," Journal of the Academy of Marketing Science, Springer, vol. 48(6), pages 1229-1253, November.
    20. Chen, Jie & Leung, Woon Sau & Evans, Kevin P., 2018. "Female board representation, corporate innovation and firm performance," Journal of Empirical Finance, Elsevier, vol. 48(C), pages 236-254.
    Full references (including those not matched with items on IDEAS)

    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. Edeling, Alexander & Srinivasan, Shuba & Hanssens, Dominique M., 2021. "The marketing–finance interface: A new integrative review of metrics, methods, and findings and an agenda for future research," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 857-876.
    2. Ya You & Shuba Srinivasan & Koen Pauwels & Amit Joshi, 2020. "How CEO/CMO characteristics affect innovation and stock returns: findings and future directions," Journal of the Academy of Marketing Science, Springer, vol. 48(6), pages 1229-1253, November.
    3. James, Hui & Benson, Bradley W. & Wu, Chen (Ken), 2017. "Does CEO ownership affect payout policy? Evidence from using CEO scaled wealth-performance sensitivity," The Quarterly Review of Economics and Finance, Elsevier, vol. 65(C), pages 328-345.
    4. Barbara Grabinska & Dorota Kedzior & Marcin Kedzior & Konrad Grabinski, 2021. "The Impact of CSR on the Capital Structure of High-Tech Companies in Poland," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    5. Bendig, David, 2022. "Chief operating officer characteristics and how they relate to exploration via patenting versus venturing," Journal of Business Research, Elsevier, vol. 140(C), pages 297-309.
    6. Christopher Kurzhals & Lorenz Graf‐Vlachy & Andreas König, 2020. "Strategic leadership and technological innovation: A comprehensive review and research agenda," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 437-464, November.
    7. Jimmy A. Saravia, 2014. "Why has the literature on corporate governance and firm performance yielded mixed results?," Documentos de Trabajo de Valor Público 10914, Universidad EAFIT.
    8. Kevin Campbell & Antonio Minguez Vera, 2010. "Female board appointments and firm valuation: short and long-term effects," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(1), pages 37-59, February.
    9. Lehn, Kenneth & Patro, Sukesh & Zhao, Mengxin, 2008. "Determinants of the Size and Structure of Corporate Boards: 1935-2000," CEI Working Paper Series 2008-13, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    10. María Consuelo Pucheta-Martínez & Inmaculada Bel-Oms & Gustau Olcina-Sempere, 2018. "Female Institutional Directors on Boards and Firm Value," Journal of Business Ethics, Springer, vol. 152(2), pages 343-363, October.
    11. Sueyoshi, Toshiyuki & Goto, Mika & Omi, Yusuke, 2010. "Corporate governance and firm performance: Evidence from Japanese manufacturing industries after the lost decade," European Journal of Operational Research, Elsevier, vol. 203(3), pages 724-736, June.
    12. Aziz Jaafar & Lynn Hodgkinson & Mao-Feng Kao, 2019. "Ownership Structure, Board of Directors and Firm Performance: Evidence from Taiwan," Working Papers 19011, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    13. Benson, Bradley W. & Chen, Yu & James, Hui L. & Park, Jung Chul, 2020. "So far away from me: Firm location and the managerial ownership effect on firm value," Journal of Corporate Finance, Elsevier, vol. 64(C).
    14. Huang, Peng & Lu, Yue & Wu, Ji, 2023. "Does board diversity in industry-experience boost firm value? The role of corporate innovation," Economic Modelling, Elsevier, vol. 128(C).
    15. Chi, Jianxin Daniel & Scott Lee, D., 2010. "The conditional nature of the value of corporate governance," Journal of Banking & Finance, Elsevier, vol. 34(2), pages 350-361, February.
    16. Jasmin Joecks & Kerstin Pull & Katrin Scharfenkamp, 2023. "Women directors and firm innovation: The role of women directors' representative function," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1203-1214, March.
    17. Poletti-Hughes, Jannine & Briano-Turrent, Guadalupe C., 2019. "Gender diversity on the board of directors and corporate risk: A behavioural agency theory perspective," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 80-90.
    18. Collins G. Ntim, 2012. "Director shareownership and corporate performance in South Africa," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 1(4), pages 359-373.
    19. Eloisa Perez-de Toledo & Maria Pilar Giraldez-Puig & Jose Manuel Hurtado-Gonzalez, 2016. "The effect of environmental jolts on board governance practices and its impact on firm value," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(1), pages 75-95, February.
    20. Carline, Nicholas F. & Linn, Scott C. & Yadav, Pradeep K., 2009. "Operating performance changes associated with corporate mergers and the role of corporate governance," Journal of Banking & Finance, Elsevier, vol. 33(10), pages 1829-1841, October.

    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:158:y:2023:i:c:s0148296323000644. 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.