Does cooperation among women enhance or impede firm performance?

Lu Xing*, Angelica Gonzalez, Ben Sila

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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.
Original languageEnglish
Article number100936
Number of pages20
JournalBritish Accounting Review
Volume53
Issue number4
Early online date14 Jul 2020
DOIs
Publication statusPublished - Jul 2021

Keywords

  • female interaction
  • top management
  • board of directors
  • firm performance
  • glass cliff

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