Strength in numbers or guilt by association? Intragroup effects of female chief executive announcements

Authors

  • Heather R. Dixon-Fowler,

    Corresponding author
    1. Department of Management, Appalachian State University, Walker College of Business, Boone, North Carolina, U.S.A.
    • Correspondence to: Heather R. Dixon-Fowler, Assistant Professor, Appalachian State University, Walker College of Business, Department of Management, 4075 Raley Hall Boone, NC 28608, U.S.A. E-mail: dixonfowlerh@appstate.edu

    Search for more papers by this author
  • Alan E. Ellstrand,

    1. Department of Management, Sam M. Walton College of Business, University of Arkansas, Fayetteville, Arkansas, U.S.A.
    Search for more papers by this author
  • Jonathan L. Johnson

    1. Department of Management, Sam M. Walton College of Business, University of Arkansas, Fayetteville, Arkansas, U.S.A.
    Search for more papers by this author

Abstract

We predict that the media reports on female CEOs as a coherent group, whereas male CEOs are treated as individuals by the media. We also suggest that the resulting investors' perceptions of group entitativity of female-led firms may not only influence the succession event–performance relationship at the focal firm, but may also have a significant effect on the value of other female-led companies. Results of a text analysis and an event study of appointments of female CEOs to Fortune 1000 firms provide support for these predictions. Copyright © 2013 John Wiley & Sons, Ltd.

Ancillary