This study examines the impact of female CEO on firm community engagement. By drawing on the stakeholder-agency paradigm, the author proposes that female CEOs feel more pressure to deliver favorable firm performance, thus resulting in less community engagement in firms with female CEOs. The author also examines circumstances surrounding the CEO as boundary conditions that can promote the extent that female CEOs engage in community initiatives.
The author collected panel data on a sample of firms listed in the S&P 500 index during the years 2009–2013. The author tested the hypotheses using firm fixed-effects models.
The results show that firms with female CEOs pursue less community engagement. CEO career horizon and CEO unexercisable stock options are boundary conditions that weaken the negative relationship between female CEOs and community engagement, while board independence does not have a significant moderating effect.
This study sheds light on the roles of female CEOs on firm community engagement as a distinct firm strategic action. Furthermore, this study provides a better understanding of the relationship by examining different factors that can promote community engagement by female CEOs, which include CEO career horizon and compensation incentive.
