Working Paper: NBER ID: w31616
Authors: Yutaro Izumi; Hitoshi Shigeoka; Masayuki Yagasaki
Abstract: While female CEOs are under-represented, the barriers they face in the business environment remain poorly understood. This study investigates the influence of gender bias in forming CEOs’ business networks. Using transaction data of 1 million Japanese firms, we find that CEOs of the same gender significantly trade more than those of the opposite gender, mostly driven by small- and medium-sized firms in which CEOs presumably have a strong involvement in transactions. As most CEOs are male, such same-gender bias reduces the trading opportunities for females relative to male CEOs. Regarding mechanisms, our survey reveals both the existence of barriers that impede male CEOs from becoming acquainted with female CEOs and the tendency for male CEOs to prefer interacting with male CEOs over female CEOs.
Keywords: CEO Gender; Gender Bias; Firm-to-Firm Transactions; Business Networks
JEL Codes: D22; J16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| CEO gender homophily eliminated (M12) | overall number of transactions (G29) |
| CEO gender homophily (M12) | gender gap in transactions (J16) |
| CEO gender homophily (M12) | transaction probabilities (C69) |
| same gender CEOs (M12) | likelihood of transactions (L14) |
| CEO gender homophily (M12) | trading opportunities (F19) |