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Gender-based CEO transitions: The role of the Big Three

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  • Song, Xiaochuan

Abstract

The Big Three institutional investors have played an increasingly important role in corporate America. This paper investigates whether the Big Three's advocacy for gender diversity extends beyond the board level to the top management. I find that the Big Three ownership is positively associated with firms’ appointment of female CEOs when transitions occur, implying that gender diversity advocacy by index investors has effectively spilled over to top management positions. Interestingly, transitions involving female CEO appointments are positively valued by the market. My findings highlight the Big Three's commitment to tackling diversity-related issues and their ability to steer corporate decision-making.

Suggested Citation

  • Song, Xiaochuan, 2023. "Gender-based CEO transitions: The role of the Big Three," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007577
    DOI: 10.1016/j.frl.2022.103581
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    References listed on IDEAS

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    More about this item

    Keywords

    The big three; CEO transition; Gender diversity; Top management team;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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