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Hilton Atlanta, Grand Ballroom D
American Finance Association
Barriers to Boardrooms
Saturday, Jan. 5, 2019 8:00 AM - 10:00 AM
- Chair: Renee Adams, University of Oxford
The Origins and Real Effects of the Gender Gap: Evidence from CEOs' Formative Years
AbstractCEOs allocate more investment capital to male managers than to female managers in the same divisions. Using data from individual Census records, we find that this gender gap is driven by CEOs who grew up in male-dominated families—those where the father was the only income earner and had more education than the mother. The gender gap also increases for CEOs who attended all-male high schools and grew up in neighborhoods with greater gender inequality. The effect of gender on capital budgeting introduces frictions and erodes investment efficiency. Overall, the gender gap originates in CEO preferences developed during formative years and produces significant real effects.
Board Quotas and Director-Firm Matching
AbstractWe study the impact of board gender quotas on the labor market for corporate directors. We find that the annual rate of turnover of female directors falls by about a third following the introduction of a quota in France in 2011. This decline in turnover is more pronounced for new appointments induced by the quota, and for appointments made by firms that regularly hire directors who are members of the French business elite. By contrast, the quota has no effect on male director turnover. The evidence suggests that, by changing the director search technology used by firms, the French quota has improved the stability of director-firm matches.
University of Pittsburgh
University of California-Los Angeles
- G0 - General