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Female directors and CEO power

  • Muhammad Usman
  • , Junrui Zhang
  • , Muhammad Umar Farooq
  • , Muhammad Abdul Majid Makki
  • , Nanyan Dong*
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

64 Scopus citations

Abstract

Beyond the recent studies on boardroom gender diversity, this letter investigates the effect of boardroom gender diversity on CEO power. Using the data of all A-share listed companies on the Shanghai and Shenzhen stock exchanges for 2005–2015 we find reliable evidence that gender diversity on the board is positively associated with CEO power. Our results remain consistent after controlling for the endogeneity problem. Our results support the inefficiency hypothesis that suggests that CEOs are more powerful when the board is gender-diverse because female directors face more pressure to go along with management and are weak monitors.

Original languageEnglish
Pages (from-to)44-47
Number of pages4
JournalEconomics Letters
Volume165
DOIs
StatePublished - Apr 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2018 Elsevier B.V.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 5 - Gender Equality
    SDG 5 Gender Equality

Keywords

  • CEO pay slice
  • CEO power
  • China
  • Gender diversity

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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