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CEO gender and managerial entrenchment

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  • Dah, Mustafa A.
  • Jizi, Mohammad I.
  • Kebbe, Reem

Abstract

This paper investigates the effect of gender on managerial authority and control over firms. The study examines S&P 1500 firms for the period of 1999–2014. Our findings suggest that accounting performance, firm value, CEO age, firm age, and board size reduce the likelihood of appointing female managers. On the other hand, the appointment of female CEOs is directly associated with the percentage of female directors, board independence, and beta. The study confirms the notion that female CEO appointments are generally associated with firms facing adverse conditions, and shows that female CEOs are more entrenched as compared to male CEOs. We find that the presence of female CEO decreases the turnover-performance sensitivity, increases the E-index, and inflates CEO compensation. Our research suggests that the level of female CEOs’ entrenchment provides them with greater job security, higher level of control, and inflated pay that compensate the risk of accepting the appointment in a high risk and poor performing firm.

Suggested Citation

  • Dah, Mustafa A. & Jizi, Mohammad I. & Kebbe, Reem, 2020. "CEO gender and managerial entrenchment," Research in International Business and Finance, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:riibaf:v:54:y:2020:i:c:s0275531919311511
    DOI: 10.1016/j.ribaf.2020.101237
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    5. Gu, Junjian, 2022. "Do at home as Romans do? CEO overseas experience and financial misconduct risk of emerging market firms," Research in International Business and Finance, Elsevier, vol. 60(C).
    6. Waseem, Fareeha, 2023. "Impact of Managerial Entrenchment on Firm Performance," OSF Preprints hmuab, Center for Open Science.
    7. Uduwalage, Emil, 2022. "Essays on corporate governance in Sri Lanka," Other publications TiSEM 9f4bd99f-e55d-471a-8aa1-4, Tilburg University, School of Economics and Management.
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