Open AccessIncentive schemes and female leadership in financial firms
Author(s) -
Björn Lantz,
Petra Bredehorst-Carlsson,
Johan Johansson
Publication year - 2013
Publication title -
corporate board: role, duties and composition
Language(s) - English
Resource type - Journals
eISSN - 2312-2722
pISSN - 1810-8601
DOI - 10.22495/cbv9i1art4
Subject(s) - incentive , return on assets , chief executive officer , return on equity , business , equity (law) , officer , tobin's q , accounting , monetary economics , finance , economics , management , microeconomics , political science , profitability index , stock exchange , law
Our purpose is to explore how performance in Swedish financial companies is affected by the presence of a female chief executive officer (CEO), the presence of an incentive scheme, and the proportion of female board members. The results indicate that a female CEO is associated with a lower return on equity (ROE) and a lower Tobin’s Q, but we find no significant association between the proportion of female board members and firm performance. An incentive scheme is generally associated with a lower return on assets (ROA) and a higher Tobin’s Q. In particular, a share-based incentive scheme is associated with a lower ROA, a lower ROE, and a higher Tobin’s Q.