IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v53y2023ics1544612323000466.html
   My bibliography  Save this article

Executive personality and the gender pay gap

Author

Listed:
  • Hrazdil, Karel
  • Novak, Jiri

Abstract

Utilizing a large sample of U.S. chief financial officers (CFOs), we show that both their personality and gender are significant determinants of their remuneration. Controlling for the ‘Big Five’ personality traits does not eliminate the differential in compensation between male and female CFOs.

Suggested Citation

  • Hrazdil, Karel & Novak, Jiri, 2023. "Executive personality and the gender pay gap," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000466
    DOI: 10.1016/j.frl.2023.103672
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323000466
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.103672?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cobb-Clark, Deborah A. & Schurer, Stefanie, 2012. "The stability of big-five personality traits," Economics Letters, Elsevier, vol. 115(1), pages 11-15.
    2. Maitra, Pushkar & Neelim, Ananta & Tran, Chau, 2021. "The role of risk and negotiation in explaining the gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 1-27.
    3. Fama, Eugene F. & French, Kenneth R., 1997. "Industry costs of equity," Journal of Financial Economics, Elsevier, vol. 43(2), pages 153-193, February.
    4. Javakhadze, David & Shelton, Austin, 2022. "Executive social connections and gender pay gaps," Journal of Corporate Finance, Elsevier, vol. 73(C).
    5. Bugeja, Martin & Matolcsy, Zoltan P. & Spiropoulos, Helen, 2012. "Is there a gender gap in CEO compensation?," Journal of Corporate Finance, Elsevier, vol. 18(4), pages 849-859.
    6. Perrin, Caroline & Weill, Laurent, 2022. "No man, No cry? Gender equality in access to credit and financial stability," Finance Research Letters, Elsevier, vol. 47(PB).
    7. Habiba Al-Shaer & Mostafa Harakeh, 2020. "Gender Differences in Executive Compensation on British Corporate Boards: the Role of Conditional Conservatism," The International Journal of Accounting (TIJA), World Scientific Publishing Co. Pte. Ltd., vol. 55(01), pages 1-48, March.
    8. Aristei, David & Gallo, Manuela, 2016. "Does gender matter for firms' access to credit? Evidence from international data," Finance Research Letters, Elsevier, vol. 18(C), pages 67-75.
    9. Karel Hrazdil & Jiri Novak & Rafael Rogo & Christine Wiedman & Ray Zhang, 2020. "Measuring executive personality using machine‐learning algorithms: A new approach and audit fee‐based validation tests," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(3-4), pages 519-544, March.
    10. Joseph S. Harrison & Gary R. Thurgood & Steven Boivie & Michael D. Pfarrer, 2019. "Measuring CEO personality: Developing, validating, and testing a linguistic tool," Strategic Management Journal, Wiley Blackwell, vol. 40(8), pages 1316-1330, August.
    11. Graham, John R. & Harvey, Campbell R. & Puri, Manju, 2013. "Managerial attitudes and corporate actions," Journal of Financial Economics, Elsevier, vol. 109(1), pages 103-121.
    12. Wayne A. Grove & Andrew Hussey & Michael Jetter, 2011. "The Gender Pay Gap Beyond Human Capital: Heterogeneity in Noncognitive Skills and in Labor Market Tastes," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 827-874.
    13. Scott D. Graffin & Timothy D. Hubbard & Dane M. Christensen & Eric Y. Lee, 2020. "The influence of CEO risk tolerance on initial pay packages," Strategic Management Journal, Wiley Blackwell, vol. 41(4), pages 788-811, April.
    14. Charles Ham & Mark Lang & Nicholas Seybert & Sean Wang, 2017. "CFO Narcissism and Financial Reporting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 55(5), pages 1089-1135, December.
    15. Withisuphakorn, Pradit & Jiraporn, Pornsit, 2017. "CEO age and CEO gender: Are female CEOs older than their male counterparts?," Finance Research Letters, Elsevier, vol. 22(C), pages 129-135.
    16. H Andrew Schwartz & Johannes C Eichstaedt & Margaret L Kern & Lukasz Dziurzynski & Stephanie M Ramones & Megha Agrawal & Achal Shah & Michal Kosinski & David Stillwell & Martin E P Seligman & Lyle H U, 2013. "Personality, Gender, and Age in the Language of Social Media: The Open-Vocabulary Approach," PLOS ONE, Public Library of Science, vol. 8(9), pages 1-16, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhao, Shifei & Liu, Jianwu & Jiang, Guizhong, 2024. "Executive education level heterogeneity and corporate internal pay gap," Finance Research Letters, Elsevier, vol. 67(PA).
    2. Yuan, Sai & Zhou, Ran & Li, Mengna & Lv, Chengchao, 2023. "Investigating the influence of digital technology application on employee compensation," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    3. Irene M. Gordon & Karel Hrazdil & Stephen Spector, 2024. "The Gender Pay Gap in Academia: Evidence from the Beedie School of Business," Administrative Sciences, MDPI, vol. 14(5), pages 1-13, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karel Hrazdil & Fereshteh Mahmoudian & Jamal A. Nazari, 2021. "Executive personality and sustainability: Do extraverted chief executive officers improve corporate social responsibility?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1564-1578, November.
    2. Hrazdil, Karel & Li, Xin & Suwanyangyuan, Nattavut, 2022. "CEO happiness and forecasting," Global Finance Journal, Elsevier, vol. 52(C).
    3. Ulrike Malmendier & Vincenzo Pezone & Hui Zheng, 2023. "Managerial Duties and Managerial Biases," Management Science, INFORMS, vol. 69(6), pages 3174-3201, June.
    4. Li, Yiwei & Zeng, Yeqin, 2019. "The impact of top executive gender on asset prices: Evidence from stock price crash risk," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 528-550.
    5. Karel Hrazdil & Jiri Novak & Rafael Rogo & Christine Wiedman & Ray Zhang, 2020. "Measuring executive personality using machine‐learning algorithms: A new approach and audit fee‐based validation tests," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(3-4), pages 519-544, March.
    6. Harakeh, Mostafa & Leventis, Stergios & El Masri, Tarek & Tsileponis, Nikolaos, 2023. "The moderating role of board gender diversity on the relationship between firm opacity and stock returns," The British Accounting Review, Elsevier, vol. 55(4).
    7. Elkinawy, Susan & Hibbert, Ann Marie & Talukdar, Bakhtear, 2023. "Gender differences in CEO risk tolerance: A look at fixed pay," Global Finance Journal, Elsevier, vol. 57(C).
    8. Linnenluecke, Martina K. & Chen, Xiaoyan & Ling, Xin & Smith, Tom & Zhu, Yushu, 2017. "Research in finance: A review of influential publications and a research agenda," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 188-199.
    9. Hrazdil, Karel & Simunic, Dan A. & Spector, Stephen & Suwanyangyuan, Nattavut, 2023. "Top executive gender diversity and financial reporting quality," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(2).
    10. Huang, Xiaohong & Kabir, Rezaul & Thijssen, Maximiliaan Willem Pierre, 2024. "Powerful female CEOs and the capital structure of firms," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    11. Yao, Wenyun & Ni, Mengjiao & Qian, Yuhang & Yang, Shujing & Cui, Xiaona, 2024. "CFO narcissism and corporate digital transformation✰," Finance Research Letters, Elsevier, vol. 64(C).
    12. Huong Trang Kim & Quang Nguyen, 2024. "Linking top managers’ behavioural traits with business practices and firm performance," Review of Managerial Science, Springer, vol. 18(11), pages 3253-3296, November.
    13. Davina Jeganathan & Samir Ghannam & Martin Bugeja, 2021. "Practice makes perfect? The effect of CEO and director experience on acquisition performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3781-3796, June.
    14. Charles Ham & Nicholas Seybert & Sean Wang, 2018. "Narcissism is a bad sign: CEO signature size, investment, and performance," Review of Accounting Studies, Springer, vol. 23(1), pages 234-264, March.
    15. Aabo, Tom & Hanousek, Jan & Pantzalis, Christos & Park, Jung Chul, 2023. "CEO personality traits and corporate value implication of acquisitions," Journal of Empirical Finance, Elsevier, vol. 73(C), pages 86-106.
    16. Syed Shams & Kristina Minnick & Mehdi Khedmati & Abeyratna Gunasekarage, 2024. "Gender diversity and acquisitions: How female directors add value in acquisition decisions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 51(1-2), pages 113-147, January.
    17. Levi, Maurice & Li, Kai & Zhang, Feng, 2014. "Director gender and mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 185-200.
    18. Gul, Ferdinand A. & Khedmati, Mehdi & Shams, Syed M.M., 2020. "Managerial acquisitiveness and corporate tax avoidance," Pacific-Basin Finance Journal, Elsevier, vol. 64(C).
    19. Hui Liang James, 2020. "CEO age and tax planning," Review of Financial Economics, John Wiley & Sons, vol. 38(2), pages 275-299, April.
    20. Johannes Brunzel, 2021. "Overconfidence and narcissism among the upper echelons: a systematic literature review," Management Review Quarterly, Springer, vol. 71(3), pages 585-623, July.

    More about this item

    Keywords

    CFO personality; Big five; Executive compensation;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000466. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.