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The Origins and Real Effects of the Gender Gap: Evidence from CEOs’ Formative Years
[Women on boards: The superheroes of tomorrow?]

Author

Listed:
  • Ran Duchin
  • Mikhail Simutin
  • Denis Sosyura

Abstract

Using individual census records, we provide novel evidence on CEOs’ socioeconomic backgrounds and study their role in investment decisions. Male CEOs allocate more investment capital to male than female division managers. This gender gap is driven by CEOs who grew up in male-dominated families where the father was the only income earner and had more education than the mother. The gender gap also increases for CEOs who attended all-male high schools and grew up in neighborhoods with greater gender inequality. The effect of gender on capital budgeting introduces frictions and erodes investment efficiency.

Suggested Citation

  • Ran Duchin & Mikhail Simutin & Denis Sosyura, 2021. "The Origins and Real Effects of the Gender Gap: Evidence from CEOs’ Formative Years [Women on boards: The superheroes of tomorrow?]," The Review of Financial Studies, Society for Financial Studies, vol. 34(2), pages 700-762.
    • Handle: RePEc:oup:rfinst:v:34:y:2021:i:2:p:700-762.
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    File URL: http://hdl.handle.net/10.1093/rfs/hhaa068
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    Citations

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    Cited by:

    1. Homroy, Swarnodeep, 2023. "GHG emissions and firm performance: The role of CEO gender socialization," Journal of Banking & Finance, Elsevier, vol. 148(C).
    2. Du, Yao & Chan, Chia-Ying & Lin, Chih-Yung & Lu, Chien-Lin, 2023. "Charitable CEOs and employee protection," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    3. Hasan, Iftekhar & Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2023. "Cultural values of parent bank board members and lending by foreign subsidiaries: The moderating role of personal traits," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 83(C).
    4. He, Zhaozhao & Miletkov, Mihail K. & Staneva, Viktoriya, 2023. "New kids on the block: The effect of Generation X directors on corporate performance," Journal of Empirical Finance, Elsevier, vol. 71(C), pages 66-87.
    5. Gao, Lei & Han, Jianlei & Pan, Zheyao & Zhang, Huixuan, 2023. "Individualistic CEO and corporate innovation: Evidence from U.S. frontier culture," Research Policy, Elsevier, vol. 52(9).

    More about this item

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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