The Origins and Real Effects of the Gender Gap: Evidence from CEOs' Formative Years

Ran Duchin, Mikhail Simutin, Denis Sosyura

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Using individual census records, we provide novel evidence on CEOs' socioeconomic backgrounds and study their role in investment decisions. Male CEOs allocate more investment capital to male than female division managers. This gender gap is driven by CEOs who grew up in male-dominated families where the father was the only income earner and had more education than the mother. The gender gap also increases for CEOs who attended all-male high schools and grew up in neighborhoods with greater gender inequality. The effect of gender on capital budgeting introduces frictions and erodes investment efficiency.

Original languageEnglish (US)
Pages (from-to)700-762
Number of pages63
JournalReview of Financial Studies
Volume34
Issue number2
DOIs
StatePublished - Feb 1 2021

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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