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The gender gap in the first deal: Equity split among founding teams

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  • Takahashi, Hidenori
  • Honjo, Yuji
  • Kato, Masatoshi

Abstract

We investigate the gender gap in equity splits among members of founding teams using proprietary survey data on Japanese startups. The results reveal that, on average, female founder chief executive officers (CEOs) own 12 percentage points less equity than male founder CEOs. The gender equity gap is more pronounced in founding teams in which the founder CEO is a woman and the other founding members are men. However, the results vary depending on the founding teams’ characteristics. Notably, the gender equity gap is observed only in teams with individuals belonging to older generations and in teams from regions (prefectures) with great gender inequality. The findings indicate that gender norms influence the gender equity gap.

Suggested Citation

  • Takahashi, Hidenori & Honjo, Yuji & Kato, Masatoshi, 2024. "The gender gap in the first deal: Equity split among founding teams," Journal of Banking & Finance, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:jbfina:v:168:y:2024:i:c:s0378426624001869
    DOI: 10.1016/j.jbankfin.2024.107272
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    More about this item

    Keywords

    Gender gap; Founder CEO; Founding team; Ownership; Compensation; Gender norms;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G40 - Financial Economics - - Behavioral Finance - - - General

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