She'-e-os: gender effects and investor reactions to the announcements of top executive appointments

This study uses Kanter's token status theory to link announcements of top executives to shareholder reactions, highlighting possible gender effects. Using a sample of top executive announcements from 1990 to 2000, our results show that investor reactions to the announcements of female CEOs are significantly more negative than those of their male counterparts. Furthermore, women who have been promoted from within a firm are viewed more positively than women who come from outside. To supplement our analysis of investor reactions, we also analyze the text of popular press articles surrounding the announcements of male and female CEOs. These results show that articles about the appointment of a female CEO tend to emphasize gender, gender-related and other job or organizational considerations. Copyright (c) 2007 John Wiley & Sons, Ltd.