Investor Reactions to Females Entering the Corporate Suite

Abstract

This study examines share price reactions to announcements of females joining the corporate suites of Fortune 500 firms from 1996-2014. I analyze announcements of female Chief Executive Officers (CEOs), Chief Operating Officers (COOs) and Chief Financial Officers (CFOs). I also examine context to determine if investor perceptions of female corporate suite members vary across industry and business sector. I propose that certain industry and business characteristics will make investors view female leadership more positively. I use role congruity theory to explain the variations in investor reactions across job title and industry. In doing so, I provide insight into the common conjecture that stereotypes of successful leadership qualities are immutable.