The effects of chief executive officer gender on firm labor investment efficiency
This study examines the relationship between the gender of the chief executive officer (CEO) and a firm's labor investment efficiency. It evaluates whether firms led by a female CEO engage in more efficient labor-related investment decisions than those led by a male CEO. Using U.S. public compa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2022-11-01
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| Series: | Borsa Istanbul Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845022000680 |
| _version_ | 1811295595418091520 |
|---|---|
| author | Kyoungwon Mo Kyung Yun (Kailey) Lee |
| author_facet | Kyoungwon Mo Kyung Yun (Kailey) Lee |
| author_sort | Kyoungwon Mo |
| collection | DOAJ |
| description | This study examines the relationship between the gender of the chief executive officer (CEO) and a firm's labor investment efficiency. It evaluates whether firms led by a female CEO engage in more efficient labor-related investment decisions than those led by a male CEO. Using U.S. public companies as samples, we found that female CEOs make better employment-based investments by inhibiting a firm's overinvestment in labor. Furthermore, the results revealed that firms with a female CEO are more efficient at hiring employees. Additional analysis demonstrated that a female CEO's ability to reduce inefficiency in labor investments is greater for firms with more free cash flow. Thus, the results suggest that female CEOs are better at preventing suboptimal labor investment decisions, especially when hiring employees. This association is stronger when they have greater managerial power within a company. |
| first_indexed | 2024-04-13T05:35:47Z |
| format | Article |
| id | doaj.art-6bc67f5ba2654530a25abf97df95dd1c |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-04-13T05:35:47Z |
| publishDate | 2022-11-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-6bc67f5ba2654530a25abf97df95dd1c2022-12-22T03:00:17ZengElsevierBorsa Istanbul Review2214-84502022-11-0122612601270The effects of chief executive officer gender on firm labor investment efficiencyKyoungwon Mo0Kyung Yun (Kailey) Lee1School of Business Administration, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul, Republic of Korea (06974)College of Business, Hankuk University of Foreign Studies, 107 Imun-ro, Dongdaemun-gu, Seoul, Republic of Korea (02450); Corresponding author.This study examines the relationship between the gender of the chief executive officer (CEO) and a firm's labor investment efficiency. It evaluates whether firms led by a female CEO engage in more efficient labor-related investment decisions than those led by a male CEO. Using U.S. public companies as samples, we found that female CEOs make better employment-based investments by inhibiting a firm's overinvestment in labor. Furthermore, the results revealed that firms with a female CEO are more efficient at hiring employees. Additional analysis demonstrated that a female CEO's ability to reduce inefficiency in labor investments is greater for firms with more free cash flow. Thus, the results suggest that female CEOs are better at preventing suboptimal labor investment decisions, especially when hiring employees. This association is stronger when they have greater managerial power within a company.http://www.sciencedirect.com/science/article/pii/S2214845022000680Female executiveLabor investmentCorporate cash holding |
| spellingShingle | Kyoungwon Mo Kyung Yun (Kailey) Lee The effects of chief executive officer gender on firm labor investment efficiency Borsa Istanbul Review Female executive Labor investment Corporate cash holding |
| title | The effects of chief executive officer gender on firm labor investment efficiency |
| title_full | The effects of chief executive officer gender on firm labor investment efficiency |
| title_fullStr | The effects of chief executive officer gender on firm labor investment efficiency |
| title_full_unstemmed | The effects of chief executive officer gender on firm labor investment efficiency |
| title_short | The effects of chief executive officer gender on firm labor investment efficiency |
| title_sort | effects of chief executive officer gender on firm labor investment efficiency |
| topic | Female executive Labor investment Corporate cash holding |
| url | http://www.sciencedirect.com/science/article/pii/S2214845022000680 |
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