Gender differences in CEOs’ performance, CEOs’ appointment, and CEOs’ risk-taking behaviors

This paper aims to estimate gender differences in 1) Firm performance, according to the influences of gender changes (F2M & M2F) within CEOs’ succession situations (Routine and Non-routine succession). In non-routine succession situations, this paper finds a significant positive influence of M2F (female replaces male CEO) succession on firm performance, especially on ROA, compared to a negative influence of F2M succession. Besides, the insignificant result of gender differences in non-routine successions indicates that the worse performance might be due to the former CEOs’ sudden departures instead of female CEOs’ low-capability. 2) CEOs’ appointment decisions based on gender diversity of the boards, and it exhibits that a higher proportion of female directors will increase the likelihood of female CEOs; especially when more females are nominating members on the boards. 3) Risk-taking behaviors, according to CEOs’ reactions to equity-based (restricted stocks & options) compensation, and It is reasonable to believe that female CEOs are prone to take M&A activities to pursue short-term benefits, and male CEOs have a higher risk-bearing in chasing long-term benefits.