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BOARD DIVERSITY AND CEO SELECTION
Author(s) -
Gupta Atul,
Raman Kartik
Publication year - 2014
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/jfir.12044
Subject(s) - position (finance) , accounting , gender diversity , diversity (politics) , business , demographic economics , selection (genetic algorithm) , on board , corporate governance , psychology , economics , political science , finance , law , computer science , artificial intelligence , history , archaeology
We find that the likelihood of a female CEO appointment increases with the proportion of female directors on the board. However, this positive relation is significant only in the subsample of firms where one of the directors is appointed CEO, and is insignificant in firms where the new CEO is not from the board. The results are consistent with the explanation that female directors constitute a supply of viable candidates for the CEO position, rather than female directors affecting the likelihood of female CEO appointments by interpreting noisy signals about the abilities of female candidates.