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Women leaders and firm performance in family businesses: An examination of financial and nonfinancial outcomes

Title:

Women leaders and firm performance in family businesses: An examination of financial and nonfinancial outcomes

Chadwick, Ingrid and Dawson, Alexandra (2018) Women leaders and firm performance in family businesses: An examination of financial and nonfinancial outcomes. Journal of Family Business Strategy, 9 (4). pp. 238-249.

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Official URL: https://doi.org/10.1016/j.jfbs.2018.10.002

Abstract

This study examines how the inclusion of women leaders in upper levels of management is associated with organizational performance in family-controlled businesses. Although the idea that gender diversity is beneficial for business has gained popularity, the business case remains equivocal and scholars are being urged to offer renewed and more nuanced support for when and how women in senior leadership roles may affect organizational outcomes. In response to these calls, we distinguish between financial and nonfinancial performance outcomes, comparing family and nonfamily businesses. Based on a framework that combines the upper echelon and double standards of competence theories, we examine the relationship between female leadership and firm performance, using panel data of large public firms from the S&P 500 over a five-year period. Our findings indicate that female-led organizations (i.e., those with a female CEO and/or CFO) outperform male-led organizations in terms of nonfinancial performance across family and nonfamily businesses. However, in financial terms, we find a statistically significant and positive relationship between female leaders and firm performance only in nonfamily businesses. Our main theoretical contribution is to suggest that the upper echelon and double standards of competence theories may not apply in family businesses in the same way as they do in nonfamily businesses, due to limitations to managerial discretion in the former. Our study has implications for practitioners, especially for owners of and advisors to family businesses.

Divisions:Concordia University > John Molson School of Business > Management
Item Type:Article
Refereed:Yes
Authors:Chadwick, Ingrid and Dawson, Alexandra
Journal or Publication:Journal of Family Business Strategy
Date:2018
Funders:
  • Concordia University’s National Bank Initiative in Entrepreneurship and Family Business
Digital Object Identifier (DOI):10.1016/j.jfbs.2018.10.002
ID Code:985032
Deposited By: ALEXANDRA DAWSON
Deposited On:26 Feb 2019 17:17
Last Modified:26 Feb 2019 17:18
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