Influence of gender of newly appointed CEO on capital market risk and stock returns of selected countries

• Main Authors: Glorioso, Naiza C., Lee, Stefanel Bridget C., Relloso, Kenny, Yusingco, Jeremy Vince S.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Stocks > Rate of return > Sex differences; Risk > Sex differences; Gender mainstreaming > Southeast Asia; Women chief executive officers > Southeast Asia; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9053
• Institution: De La Salle University

Although there is a scarce number of females assuming top management positions, the position of chief executive officer (CEO) is not exclusive to one gender. However, gender stereotypes can affect the perception and decision-making of market investors. Using a matched sample of newly appointed male and female CEOs in Malaysia, Indonesia and the Philippines from 2005-2015, the study aimed to determine the influence of a CEO gender on stock returns and capital market risks of publicly-listed firms. The results showed that the markets of Malaysia, Indonesia and the Philippines produced significant stock returns upon the appointment of a new male CEO. Inversely, insignificant stock returns were identified with the appointment of a new female CEO. The shifts/changes in capital market risks, namely total risk, market risk and idiosyncratic risk, were distinct among the three countries. The assumption that women tend to be more risk-averse compared to men is not ascertained.