Are firms with women executives better at surviving a crisis? Evidence from South Korea during the COVID-19 pandemic

Abstract

Purpose This study aims to examine whether investors react differently to the crisis during the COVID-19 pandemic based on chief executive officer (CEO) gender. Design/methodology/approach This study is based on a sample of publicly listed companies in Korea. The study uses the ordinary least squares regression and propensity score matching approach to address the research question. The dependent variable used in the regressions is the cumulative abnormal returns over 30, 60 and 90 days after the first COVID-19 case was confirmed in Korea. Findings The results show that cumulative abnormal returns over 30, 60 and 90 days after the first COVID-19 case are less negative for firms led by women CEOs compared to firms led by men CEOs. This is consistent with the prediction that investors favor firms with women CEOs in times of high uncertainty. Originality/value This study adds to the growing literature on the stock market during the COVID-19 pandemic. It provides empirical evidence that the effect of the pandemic on stock market performance differs by management characteristics such as CEO gender.