She-E-Os and innovation: do female CEOs influence firm innovation?
European Journal of Innovation Management
ISSN: 1460-1060
Article publication date: 21 December 2021
Issue publication date: 8 June 2023
Abstract
Purpose
This paper empirically investigates whether female CEOs (She-E-Os) have an effect on firm innovation among Chinese listed firms based on patent data. This study also delved further by looking at whether the internal corporate environment moderates the effect of female CEOs on innovation, that is, state ownership. Finally, this study investigates an additional test of financial constraints to examine whether financial constraints also moderate the impact of female CEOs on firm innovation.
Design/methodology/approach
This study used the data of all A-share listed companies on the Shanghai and Shenzhen stock exchanges for the period from 2008 to 2017. The authors use ordinary least squares regression as a baseline methodology, along with firm-fixed effect, lagged measure of female CEOs, alternative measures of innovation, Heckman two-step model and negative binomial regression to check and control the possible issue of endogeneity.
Findings
The authors’ findings show that CEO gender plays an important role in producing higher levels of innovation output by improving the governance structure. However, female CEOs have no effect on state-owned enterprises' (SOEs) innovation activities, which suggests that the main goal of SOEs is achieving sociopolitical objectives. Furthermore, female CEOs' influence on innovation output is weaker in firms with financial constraints.
Social implications
This study adds to the emerging global discussion on gender diversity. Many legislative bodies require a quota for women on corporate boards due to gender inequality. This study's findings reinforce such guidelines by emphasizing the economic benefits of including women in top management positions.
Originality/value
This study provides new insights by highlighting the role of female CEOs in increasing firms' innovation activities. Additionally, this study provides evidence on whether the internal corporate environment (state ownership and financial constraints) moderates female CEOs' effect on innovation.
Keywords
Acknowledgements
The authors are grateful to the Editor, and anonymous reviewers for their constructive comments and suggestions, which have helped to improve this paper.
Citation
Javaid, H.M., Ain, Q.U. and Renzi, A. (2023), "She-E-Os and innovation: do female CEOs influence firm innovation?", European Journal of Innovation Management, Vol. 26 No. 4, pp. 982-1004. https://doi.org/10.1108/EJIM-04-2021-0227
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited