This study investigates how CEO gender (male vs. female) and business strategy (risk-taking vs. risk-averse) jointly influence individual investors’ evaluations of the strategy and their willingness to invest. Additionally, it examines whether the joint effect of CEO gender and business strategy depends on the nature of the industry – specifically whether it is male-dominated or gender-neutral.
This study utilizes an experiment conducted via the Qualtrics platform. The sample comprises 138 upper-level college students majoring in accounting at a US public university. The data are analyzed using ANOVA, simple effects and the Hayes Process Model.
The results indicate that individual investors favor female CEOs over male CEOs in male-dominated industries when a risk-averse strategy is proposed. However, this effect dissipates in gender-neutral industries. Path analyses indicate that when the industry is male-dominated and a risk-averse strategy is proposed, perceived strategy success likelihood and CEO credibility mediate the impact of CEO gender on investment willingness.
This study contributes to the literature by applying role congruity theory to examine whether CEOs are assessed differently for identical business strategies based on their gender and whether such biased assessments exist in different types of industry. The findings add to the growing body of literature, underscoring individual investors’ gender-based evaluation. Additionally, it underscores the challenges of achieving unbiased investment decisions and the potential penalties faced by CEOs whose business strategies conflict with their gender norms.
