No CrossRef data available.
Article contents
Gender and Managerial Job Mobility: Career Prospects for Executives Displaced by Acquisitions
Published online by Cambridge University Press: 29 June 2023
Abstract
Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.
We investigate how men and women fare in the managerial labor market in the plausibly exogenous circumstance of their firms being acquired when most target-firm managers (about 90%) are displaced. These career disruptions result in a larger drop in rank and compensation for female managers, despite similar job search attributes. Gender differences are mitigated when hiring firms have more women in upper-echelon positions. Rich managerial experience and external board service also reduce gender-related differences. Overall, results point to a (implicit) “gender penalty” in terms of managerial job mobility, but also indicate contexts in which penalty is alleviated, and even reversed.
- Type
- Research Article
- Information
- Creative Commons
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (https://creativecommons.org/licenses/by-nc-nd/4.0), which permits non-commercial re-use, distribution, and reproduction in any medium, provided that no alterations are made and the original article is properly cited. The written permission of Cambridge University Press must be obtained prior to any commercial use and/or adaptation of the article.- Copyright
- © The Author(s), 2023. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington
Footnotes
We thank two anonymous referees, Anup Agrawal, Vineet Bhagwat, Mara Faccio (the editor), David King, Lei Kong, Marc Lipson, John List, Johan Maharjan, David Matsa, Shawn Mobbs, Josh Pierce, and Emilia Vähäma, seminar participants at the 2020 Labor and Finance Online Seminar and Nova School of Business and Economics, participants at The Dawgs Virtual Workshop, and John List’s Team meeting, and conference participants at the 2020 Boca Corporate Finance and Governance Conference, 2020 Financial Management Association Doctoral Consortium, 2021 Northern Finance Association conference, and 2020 Southern Finance Association conference for valuable comments.
References
Adams, R. B. “Women on Boards: The Superheroes of Tomorrow?” Leadership Quarterly, 27 (2016), 371–386.CrossRefGoogle Scholar
Adams, R. B., and Funk, P.. “Beyond the Glass Ceiling: Does Gender Matter?” Management Science, 58 (2012), 219–235.CrossRefGoogle Scholar
Adams, R. B.; Kräussl, R.; Navone, M.; and Verwijmeren, P.. “Gendered Prices.” Review of Financial Studies, 34 (2021), 3789–3839.CrossRefGoogle Scholar
Agrawal, A., and Walkling, R. A.. “Executive Careers and Compensation Surrounding Takeover Bids.” Journal of Finance, 49 (1994), 985–1014.CrossRefGoogle Scholar
Albanesi, S.; Olivetti, C.; and Prados, M. J.. “Gender and Dynamic Agency: Theory and Evidence on the Compensation of Top Executives.” In Research in Labor Economics: Gender in the Labor Market, Vol. 42, Polachek, S. W., ed. Bingley, UK: Emerald Group Publishing Limited (2015), 1–59.CrossRefGoogle Scholar
Antal, A. B., and Izraeli, D.. “Women in Management: An International Perspective.” Women in Management, 4 (1993), 52–96.Google Scholar
Baixauli-Soler, J. S.; Belda-Ruiz, M.; and Sanchez-Marin, G.. “An Executive Hierarchy Analysis of Stock Options: Does Gender Matter?” Review of Managerial Science, 11 (2017), 737–766.CrossRefGoogle Scholar
Banaji, M. R., and Greenwald, A. G.. “Implicit Gender Stereotyping in Judgments of Fame.” Journal of Personality and Social Psychology, 68 (1995), 181–198.CrossRefGoogle ScholarPubMed
Barbulescu, R., and Bidwell, M.. “Do Women Choose Different Jobs from Men? Mechanisms of Application Segregation in the Market for Managerial Workers.” Organization Science, 24 (2013), 737–756.CrossRefGoogle Scholar
Becker‐Blease, J. R.; Elkinawy, S.; and Stater, M.. “The Impact of Gender on Voluntary and Involuntary Executive Departure.” Economic Inquiry, 48 (2010), 1102–1118.CrossRefGoogle Scholar
Bertrand, M. “New Perspectives on Gender.” Handbook of Labor Economics 4 (2011), 1543–1590.Google Scholar
Bertrand, M. “Coase Lecture–The Glass Ceiling.” Economica, 85 (2018), 205–231.CrossRefGoogle Scholar
Bertrand, M.; Chugh, D.; and Mullainathan., S. “Implicit Discrimination.” American Economic Review, 95 (2005), 94–98.CrossRefGoogle Scholar
Bertrand, M.; Goldin, C.; and Katz, L. F.. “Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors.” American Economic Journal: Applied Economics, 2 (2010), 228–255.Google Scholar
Bertrand, M., and Hallock, K. F.. “The Gender Gap in Top Corporate Jobs.” ILR Review, 55 (2001), 3–21.CrossRefGoogle Scholar
Blau, F. D., and DeVaro, J.. “New Evidence on Gender Differences in Promotion Rates: An Empirical Analysis of a Sample of New Hires.” Industrial Relations: A Journal of Economy and Society, 46 (2007), 511–550.CrossRefGoogle Scholar
Blau, F. D., and Kahn, L. M.. “The Gender Wage Gap: Extent, Trends, and Explanations.” Journal of Economic Literature, 55 (2017), 789–865.CrossRefGoogle Scholar
Boivie, S.; Graffin, S. D.; Oliver, A. G.; and Withers, M. C.. “Come Aboard! Exploring the Effects of Directorships in the Executive Labor Market.” Academy of Management Journal, 59 (2016), 1681–1706.CrossRefGoogle Scholar
Booth, A. L.; Francesconi, M.; and Frank, J.. “A Sticky Floors Model of Promotion, Pay, and Gender.” European Economic Review, 47 (2003), 295–322.CrossRefGoogle Scholar
Bosquet, C.; Combes, P. P.; and García‐Peñalosa, C.. “Gender and Promotions: Evidence from Academic Economists in France.” Scandinavian Journal of Economics, 121 (2019), 1020–1053.CrossRefGoogle Scholar
Buser, T.; Niederle, M.; and Oosterbeek, H.. “Gender, Competitiveness, and Career Choices.” Quarterly Journal of Economics, 129 (2014), 1409–1447.CrossRefGoogle Scholar
Cannella, A. A. Jr, and Hambrick, D. C..“Effects of Executive Departures on the Performance of Acquired Firms.” Strategic Management Journal, 14 (1993), 137–152.CrossRefGoogle Scholar
Card, D.; Cardoso, A. R.; and Kline, P.. “Bargaining, Sorting, and the Gender Wage Gap: Quantifying the Impact of Firms on the Relative Pay of Women.” Quarterly Journal of Economics, 131 (2016), 633–686.CrossRefGoogle Scholar
Cassidy, H.; DeVaro, J.; and Kauhanen, A.. “Promotion Signaling, Gender, and Turnover: New Theory and Evidence.” Journal of Economic Behavior & Organization, 126 (2016), 140–166.CrossRefGoogle Scholar
Cotter, D. A.; Hermsen, J. M.; Ovadia, S.; and Vanneman, R.. “The Glass Ceiling Effect.” Social Forces, 80 (2001), 655–681.CrossRefGoogle Scholar
Croson, R., and Gneezy, U.. “Gender Differences in Preferences.” Journal of Economic Literature, 47 (2009), 448–474.CrossRefGoogle Scholar
Custódio, C.; Ferreira, M. A.; and Matos, P.. “Generalists Versus Specialists: Lifetime Work Experience and Chief Executive Officer Pay.” Journal of Financial Economics, 108 (2013), 471–492.CrossRefGoogle Scholar
Derks, B.; Van Laar, C.; and Ellemers, N.. “The Queen Bee Phenomenon: Why Women Leaders Distance Themselves from Junior Women.” Leadership Quarterly, 27 (2016), 456–469.CrossRefGoogle Scholar
Dohmen, T. J.; Kriechel, B.; and Pfann, G. A.. “Monkey Bars and Ladders: The Importance of Lateral and Vertical Job Mobility in Internal Labor Market Careers.” Journal of Population Economics, 17 (2004), 193–228.CrossRefGoogle Scholar
Duchin, R.; Simutin, M.; and Sosyura, D.. “The Origins and Real Effects of the Gender Gap: Evidence from CEOs’ Formative Years.” Review of Financial Studies, 34 (2021), 700–762.CrossRefGoogle Scholar
Ewens, M., and Townsend, R. R.. “Are Early Stage Investors Biased Against Women?” Journal of Financial Economics, 135 (2020), 653–677.CrossRefGoogle Scholar
Fagenson, E. A., and Jackson, J. J.. “The Status of Women Managers in the United States.” International Studies of Management & Organization, 23 (1993), 93–112.CrossRefGoogle Scholar
Fee, C. E., and Hadlock, C. J.. “Management Turnover Across the Corporate Hierarchy.” Journal of Accounting and Economics, 37 (2004), 3–38.CrossRefGoogle Scholar
Fernandez-Mateo, I., and Fernandez, R. M.. “Bending the Pipeline? Executive Search and Gender Inequality in Hiring for Top Management Jobs.” Management Science, 62 (2016), 3636–3655.CrossRefGoogle Scholar
Ferreira, D. “Board Diversity.” In Corporate Governance: A Synthesis of Theory, Research, and Practice. Hoboken, NJ: John Wiley and Sons (2010), 225–242.CrossRefGoogle Scholar
Fitzsimmons, T. W.; Callan, V. J.; and Paulsen, N.. “Gender Disparity in the C-suite: Do Male and Female CEOs Differ in How They Reached the Top?” Leadership Quarterly, 25 (2014), 245–266.CrossRefGoogle Scholar
Folke, O., and Rickne, J.. “All the Single Ladies: Job Promotions and the Durability of Marriage.” American Economic Journal: Applied Economics, 12 (2020), 260–287.Google Scholar
Francis, B. B.; Hasan, I.; Shen, Y. V.; and Wu, Q.. “Do Activist Hedge Funds Target Female CEOs? The Role of CEO Gender in Hedge Fund Activism.” Journal of Financial Economics, 141 (2021), 372–393.CrossRefGoogle Scholar
Gafni, H.; Marom, D.; Robb, A.; and Sade, O.. “Gender Dynamics in Crowdfunding (Kickstarter), Evidence on Entrepreneurs, Backers, and Taste-Based Discrimination.” Review of Finance, 25 (2021), 235–274.CrossRefGoogle Scholar
Gayle, G.; Golan, L.; and Miller, R. A.. “Gender Differences in Executive Compensation and Job Mobility.” Journal of Labor Economics, 30 (2012), 829–872.CrossRefGoogle Scholar
Ginther, D. K., and Kahn, S.. “Women in Economics: Moving Up or Falling Off the Academic Career Ladder?” Journal of Economic Perspectives, 18 (2004), 193–214.CrossRefGoogle Scholar
Gneezy, U.; Niederle, M.; and Rustichini, A.. “Performance in Competitive Environments: Gender Differences.” Quarterly Journal of Economics, 118 (2003), 1049–1074.CrossRefGoogle Scholar
Guldiken, O.; Mallon, M. R.; Fainshmidt, S.; Judge, W. Q.; and Clark, C. E.. “Beyond Tokenism: How Strategic Leaders Influence More Meaningful Gender Diversity on Boards of Directors.” Strategic Management Journal, 40 (2019), 2024–2046.CrossRefGoogle Scholar
Hadlock, C.; Houston, J.; and Ryngaert, M.. “The Role of Managerial Incentives in Bank Acquisitions.” Journal of Banking & Finance, 23 (1999), 221–249.CrossRefGoogle Scholar
Hartzell, J. C.; Ofek, E.; and Yermack, D.. “What’s In It for Me? CEOs Whose Firms Are Acquired.” Review of Financial Studies, 17 (2004), 37–61.CrossRefGoogle Scholar
Hauser, R. “Busy Directors and Firm Performance: Evidence from Mergers.” Journal of Financial Economics, 128 (2018), 16–37.CrossRefGoogle Scholar
Heilman, M. E.; Block, C. J.; and Stathatos, P.. “The Affirmative Action Stigma of Incompetence: Effects of Performance Information Ambiguity.” Academy of Management Journal, 40 (1997), 603–625.CrossRefGoogle Scholar
Heilman, M. E.; Manzi, F.; and Braun, S.. “Presumed Incompetent: Perceived Lack of Fit and Gender Bias in Recruitment and Selection.” In Handbook of Gendered Careers in Management. Cheltenham: Edward Elgar Publishing (2015), 90–104.Google Scholar
Hospido, L.; Laeven, L.; and Lamo, A.. “The Gender Promotion Gap: Evidence from Central Banking.” Review of Economics and Statistics, 104 (2022), 981–996.CrossRefGoogle Scholar
Imbens, G. W. “Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review.” Review of Economics and Statistics, 86 (2004), 4–29.CrossRefGoogle Scholar
Jarrell, G. A.; Brickley, J. A.; and Netter, J. M.. “The Market for Corporate Control: The Empirical Evidence Since 1980.” Journal of Economic Perspectives, 2 (1988), 49–68.CrossRefGoogle Scholar
Keloharju, M.; Knüpfer, S.; and Tåg, J.. “What Prevents Women from Reaching the Top?” Financial Management, 51 (2022), 711–738.CrossRefGoogle Scholar
Kleinbaum, A. M.; Stuart, T. E.; and Tushman, M. L.. “Discretion Within Constraint: Homophily and Structure in a Formal Organization.” Organization Science, 24 (2013), 1316–1336.CrossRefGoogle Scholar
Kleinjans, K. J.; Krassel, K. F.; and Dukes, A.. “Occupational Prestige and the Gender Wage Gap.” Kyklos, 70 (2017), 565–593.CrossRefGoogle Scholar
Klenke, K., ed. Women in Leadership: Contextual Dynamics and Boundaries. Cheltenham: Emerald Group Publishing (2017).CrossRefGoogle Scholar
Kossek, E. E.; Su, R.; and Wu, L.. ““Opting Out” or “Pushed Out”? Integrating Perspectives on Women’s Career Equality for Gender Inclusion and Interventions.” Journal of Management, 43 (2017), 228–254.CrossRefGoogle Scholar
Kray, L. J., and Thompson, L.. “Gender Stereotypes and Negotiation Performance: An Examination of Theory and Research.” Research in Organizational Behavior, 26 (2004), 103–182.CrossRefGoogle Scholar
Krug, J. A.; Wright, P.; and Kroll, M. J.. “Top Management Turnover Following Mergers and Acquisitions: Solid Research to Date but Still Much to Be Learned.” Academy of Management Perspectives, 28 (2014), 147–163.CrossRefGoogle Scholar
Madden, J. F. “Why Women Work Closer to Home.” Urban Studies, 18 (1981), 181–194.CrossRefGoogle Scholar
Martin, K. J., and McConnell, J. J.. “Corporate Performance, Corporate Takeovers, and Management Turnover.” Journal of Finance, 46 (1991), 671–687.CrossRefGoogle Scholar
Matsa, D. A., and Miller, A. R.. “Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership.” American Economic Review, 101 (2011), 635–639.CrossRefGoogle Scholar
Murphy, K. J. “Executive Compensation.” Handbook of Labor Economics, 3 (1999), 2485–2563.CrossRefGoogle Scholar
Niederle, M. “A Gender Agenda: A Progress Report on Competitiveness.” American Economic Review, 107 (2017), 115–119.CrossRefGoogle Scholar
Pearlman, J. “Gender Differences in the Impact of Job Mobility on Earnings: The Role of Occupational Segregation.” Social Science Research, 74 (2018), 30–44.CrossRefGoogle ScholarPubMed
Pontiff, J.; Shleifer, A., and Weisbach, M. S.. “Reversions of Excess Pension Assets After Takeovers.” RAND Journal of Economics, 21 (1990), 600–613.CrossRefGoogle Scholar
Pratto, F.; Stallworth, L. M.; and Sidanius, J.. “The Gender Gap: Differences in Political Attitudes and Social Dominance Orientation.” British Journal of Social Psychology, 36 (1997), 49–68.CrossRefGoogle ScholarPubMed
Reskin, B. F., and Bielby, D. D.. “A Sociological Perspective on Gender and Career Outcomes.” Journal of Economic Perspectives, 19 (2005), 71–86.CrossRefGoogle Scholar
Reuben, E.; Wiswall, M.; and Zafar, B.. “Preferences and Biases in Educational Choices and Labour Market Expectations: Shrinking the Black Box of Gender.” Economic Journal, 127 (2017), 2153–2186.CrossRefGoogle Scholar
Rubin, A. “Political Views and Corporate Decision Making: The Case of Corporate Social Responsibility.” Financial Review, 43 (2008), 337–360.CrossRefGoogle Scholar
Schein, V. E.; Mueller, R.; Lituchy, T.; and Liu, J.. “Think Manager—Think Male: A Global Phenomenon?” Journal of Organizational Behavior, 17 (1996), 33–41.3.0.CO;2-F>CrossRefGoogle Scholar
Storvik, A. E., and Schøne, P.. “In Search of the Glass Ceiling: Gender and Recruitment to Management in Norway’s State Bureaucracy.” British Journal of Sociology, 59 (2008), 729–755.CrossRefGoogle ScholarPubMed
Tajfel, H.; Turner, J. C.; Austin, W. G.; and Worchel, S.. “An Integrative Theory of Intergroup Conflict.” In Organizational Identity: A Reader. Oxford: Oxford University Press (1979).Google Scholar
Tate, G., and Yang, L.. “Female Leadership and Gender Equity: Evidence from Plant Closure.” Journal of Financial Economics, 117 (2015), 77–97.CrossRefGoogle Scholar
Van der Klaauw, B., and da Silva, A. Dias. “Wage Dynamics and Promotions Inside and Between Firms.” Journal of Population Economics, 24 (2011), 1513–1548.CrossRefGoogle Scholar
Wajcman, J. Managing Like a Man: Women and Men in Corporate Management. Hoboken, NJ: John Wiley & Sons (2013).Google Scholar
Walsh, J. P., and Ellwood, J. W.. “Mergers, Acquisitions, and the Pruning of Managerial Deadwood.” Strategic Management Journal, 12 (1991), 201–217.CrossRefGoogle Scholar
Wood, G. J., and Newton, J.. “Childlessness and Women Managers: ‘Choice’ Context and Discourses.” Gender, Work & Organization, 13 (2006), 338–358.CrossRefGoogle Scholar
Wozniak, D.; Harbaugh, W. T.; and Mayr, U.. “The Menstrual Cycle and Performance Feedback Alter Gender Differences in Competitive Choices.” Journal of Labor Economics, 32 (2014), 161–198.CrossRefGoogle Scholar
Xu, J. “The Gender Gap in Executive Promotions.” In Asian Finance Association Conference. Ultimo, NSW: University of Technology Sydney (2018).Google Scholar
Zhang, H. “Gender Difference in Promotions: New Evidence from the Internal Labor Market in China.” Applied Economics, 51 (2019), 6021–6033.CrossRefGoogle Scholar
Guo et al. supplementary material
File
343.7 KB
You have
Access
Open access