CEO’s gender might influence company’s performance: Study

According to a new study, a CEO series including a gender change possibly will intensify the succession process disruption and therefore will be certainly affect the Company’s performance.

CEO’s gender might influence company’s performance: Study

While, the study that was conducted by the Beijing’s Rice University and the Central University of Finance and Economics management experts further highlighted that the CEO succession’s troublesome impact with gender change, was shown mainly in the case of male-to-female succession.

Giving some more details about the study findings, Fayez Sarofim Vanguard’s Rice University’s Jones Graduate School of Business strategic management professor and the study lead author, Yan Anthea Zhang said that for gaining the correct results, during the period of 1997 to 2010, they used the data from almost 3,320 CEO successions in companies which were listed on China’s Shanghai and Shenzhen stock exchanges and after concluding the data they found that especially male-to-female succession, the gender change dynamics too boosted the probability of the new CEO’s early departure.

The study further highlighted that the number of companies which were listed on China’s Shanghai and Shenzhen stock exchanges certainly got increased from 720 in 1997 to 2,100 in the year 2010.

“Our focus on the gender difference between a predecessor and a successor may offer novel insights into some of the social-psychological processes surrounding the CEO succession event. While the empirical context is Chinese, the issue should be of interest to companies in the US,” Yan said.