Does cooperation among women enhance or impede firm performance?

Xing, L. , Gonzalez, A. and Sila, V. (2021) Does cooperation among women enhance or impede firm performance? British Accounting Review, 53(4), 100936. (doi: 10.1016/j.bar.2020.100936)

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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.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Gonzalez, Dr Angelica and Xing, Dr Lu
Authors: Xing, L., Gonzalez, A., and Sila, V.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:British Accounting Review
Publisher:Elsevier
ISSN:0890-8389
ISSN (Online):1095-8347
Published Online:14 July 2020
Copyright Holders:Copyright © 2020 Elsevier Ltd.
First Published:First published in British Accounting Review 53(4): 100936
Publisher Policy:Reproduced in accordance with the publisher copyright policy

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