Beyond the Glass Ceiling: How Women Leaders Drive Innovation and Performance in Top Management

Silva, Buddhika and Hasan, Amena (2023): Beyond the Glass Ceiling: How Women Leaders Drive Innovation and Performance in Top Management. Forthcoming in: Journal of Gender Equality , Vol. 2, No. 35 (2024): pp. 1-19.

Abstract

Driven by societal pressures and a growing focus on diversity, corporations are increasingly seeking to diversify their leadership teams. Female representation on corporate boards is a topic of growing interest, with many European countries recently implementing formal gender diversity requirements. This study analyzes existing research on gender diversity in boardrooms, examining the characteristics of women directors, the challenges they encounter, and the barriers hindering their advancement. Despite the recognized benefits of gender diversity, male-dominated boards and ingrained gender biases often confine women to lower-level positions. As women climb the corporate ladder, they face the "glass ceiling" and "glass cliff" phenomena, further limiting their progress. However, research reveals no significant difference in long-term financial performance between companies led by men and women. In fact, increased female representation can positively impact innovation. This suggests that the glass ceiling and other barriers are not based on a lack of talent among women but rather on unconscious biases and discriminatory practices. This article advocates for balanced board representation based on qualifications, fostering true gender diversity and unlocking its potential benefits for organizations.

• Item Type: MPRA Paper
• Language: English
• Keywords: Empowerment, innovation, leadership, biases, gender roles, discrepancies, financial performance
• Subjects: D - Microeconomics > D6 - Welfare Economics; D - Microeconomics > D6 - Welfare Economics > D60 - General; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy; N - Economic History > N9 - Regional and Urban History

References

1. Adams, R. B. and D. Ferreira. “Women in the Boardroom and their Impact on Governance and Performance.” Journal of Financial Economics 94 (2009): 291-309. doi:10.1016/j.jfineco.2008.10.007.

2. Adler, Nancy J. “Asian Women in Management.” Asia Pacific Journal of Management 1 (1984): 17-27.

3. Ahern, Kenneth R., and Amy K. Dittmar. “The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation.” Quarterly Journal of Economics 127, no. 1 (2012): 137-197.

4. Andreoni, James, and Lise Vesterlund. “Which Is the Fair Sex? Gender Differences in Altruism.” Quarterly Journal of Economics 116, no. 1 (2001): 293-312.

5. Babic, Audrey, and Isabelle Hansez. “The Glass Ceiling for Women Managers: Antecedents and Consequences for Work-Family Interface and Well-Being at Work.” Journal of Business Ethics 76, no. 3 (2007): 297-311.

6. Bennett, R. J. “Cracking the glass ceiling as well as the floor: Factors affecting women’s advancement into upper management.” Research Brief in Academy of Management Executive 16, no. 1 (2002): 157-159.

7. Bilimoria, Diana. “The Relationship Between Women Corporate Directors and Women Corporate Officers.” ProQuest, 2000.

8. Bishu, Sebawit G., and Mohamad G. Alkadry. “A Systematic Review of the Gender Pay Gap and Factors That Predict It.” Administration & Society 49, no. 1 (2017): 40-75.

9. Bosworth, William and Sharon Lee. “Mandated or Spontaneous Board Diversity? Does It Matter?” Journal of Business Ethics 94 (2010): 191-206. doi:10.1007/s10551-009-0269-8.

11. Brammer, Stephen, Andrew Millington, and Stephen Pavelin. “Gender and Ethnic Diversity Among UK Corporate Boards.” Corporate Governance: An International Review 18, no. 2 (2010): 125-138.

12. Bruckmuller, Susanne and Nyla R. Branscombe. “The Glass Cliff: When and Why Women Are Selected as Leaders in Crisis Contexts.” Journal of Applied Social Psychology 40 (2010): 2569-2591. doi:10.1111/j.1559-1816.2010.00673.x.

13. Campbell, Kevin, and Antonio Mínguez-Vera. “Gender Diversity in the Boardroom and Firm Financial Performance.” Journal of Business Ethics 83, no. 3 (2008): 435-451.

14. Cohen, Lisa E., and Joseph P. Broschak. “Whose Jobs Are These? The Impact of the Proportion of Female Managers on the Number of New Management Jobs Filled by Women versus Men.” Administrative Science Quarterly 58, no. 3 (2013): 361-396.

15. Cohen, Philip N. “Working for the Woman? Female Managers and the Gender Wage Gap.”

16. American Sociological Review 82 (2017): 759-787.

17. Cook, A., & Glass, C. (2014). Above the glass ceiling: When are women and racial/ethnic minorities promoted to CEO? Sociological Perspectives, 57(4), 399-422.

18. Cotter, D.A., Hermsen, J.M., Ovadia, S., & Vanneman, R. (2001). The glass ceiling effect. Social Forces, 80(2), 655-682.

19. De Anca, Celia, and Patricia Gabaldon. “The Media Impact of Board Member Appointments in Spanish-Listed Companies: A Gender Perspective.” Journal of Business Ethics 111, no. 4 (2012): 461-476.

20. De la Rey, Cheryl. “Gender, Women and Leadership.” Agenda, vol. 19, no. 65, 2005, pp. 4-10. Dezső, Cristian L., and David Gaddis Ross. “Does Female Representation in Top Management

21. Improve Firm Performance? A Panel Data Investigation.” Strategic Management Journal 33, no. 9 (2012): 1072-1089.

22. Chowdhury, E. K. (2024). Examining the benefits and drawbacks of social media usage on academic performance: a study among university students in Bangladesh. Journal of Research in Innovative Teaching & Learning, 1-17, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JRIT-07-2023-0097

23. Chowdhury, E. K. (2023). Is the Application of Blockchain Technology in Accounting Feasible? A Developing Nation Perspective. In Abedin, M.K., Hajek, P. (eds.) Cyber Security and Business Intelligence Innovations and Machine Learning for Cyber Risk Management (pp. 46-64). Routledge. https://doi.org/10.4324/9781003285854

24. Chowdhury, E. K., & Humaira, U. (2023). The Russia–Ukraine conflict and investor psychology in financial markets. Economic Affairs, 43(3), 388-405. https://doi.org/10.1111/ecaf.12596

25. Chowdhury E.K, & Khan I.I. (2023). Reactions of Global Stock Markets to the Russia–Ukraine War: An Empirical Evidence, Asia-Pacific Financial Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1007/s10690-023-09429-4

26. Chowdhury, E. K. (2023). Do weather patterns effect investment decisions in the stock market? A South Asian perspective, Journal of Asset Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1057/s41260-023-00334-z

27. Chowdhury, E. K. (2021). Financial accounting in the era of blockchain-a paradigm shift from double entry to triple entry system. Available at SSRN 3827591. http://dx.doi.org/10.2139/ssrn.3827591

28. Chowdhury, E. K., Stasi. A. & Pellegrino. A. (2023). Blockchain Technology in Financial Accounting: Emerging Regulatory Issues. Review of Economics and Finance. 21 (1), 862-868. https://refpress.org/ref-vol21-a94/

29. Chowdhury, E. K., & Abdullah, M. N. (2023). Gauging Demand for Cryptocurrency over the Economic Policy Uncertainty and Stock Market Volatility. Computational Economics, 1-19. https://doi.org/10.1007/s10614-023-10423-1

30. Abdullah, M.N., Chowdhury, E.K. & Tooheen, R.B. (2022). Determinants of capital structure in banking sector: a Bangladesh perspective. SN Bus Econ. 2, (190). https://doi.org/10.1007/s43546-022-00370-8

31. Chowdhury E.K, Khan I.I, Dhar B.K. (2021). Catastrophic impact of Covid-19 on the global stock markets and economic activities. Business & Society Review, 127 (2), 437-460. https://doi.org/10.1111/basr.12219

32. Chowdhury E.K, Khan I.I, Dhar B.K. (2023). Strategy for implementing blockchain technology in accounting: Perspectives of stakeholders in a developing nation. Business Strategy & Development, 6 (3), 477-490. https://doi.org/10.1002/bsd2.256

33. Chowdhury, E, K., & Islam, A. (2017). Role of Foreign Direct Investment in the Stock Market Development of Bangladesh- A Cointegration and VAR Approach. The Bangladesh Accountant, April-June, 2017, 63-74. The Institute of Chartered Accountants of Bangladesh. https://tinyurl.com/y8hs2paf

34. Chowdhury, E. K (2021). Does Internal Control Influence Financial Performance of Commercial Banks? Evidence from Bangladesh. South Asian Journal of Management, 28(1), 59-77. https://tinyurl.com/59nr5axm

35. Chowdhury, E. K. (2012). Impact of inflation on bank lending rates in Bangladesh. Journal of Politics and Governance, 1(1), 5-14. https://tinyurl.com/26y2pw6y

36. Chowdhury, E. K. (2012). The Impact of Merger on Shareholders' Wealth. International Journal of Applied Research in Business Administration and Economics, 1(2), 27-32. https://tinyurl.com/ycxt59vz

37. Chowdhury, E. K. (2016). Investment Behavior: A Study on Working Women in Chittagong. Premier Critical Perspective, 2 (1). 95-109. http://digitalarchives.puc.ac.bd:8080/xmlui/handle/123456789/67

38. Chowdhury, E. K. (2017). Functioning of Fama-French Three- Factor Model in Emerging Stock Markets: An Empirical Study on Chittagong Stock Exchange, Bangladesh. Journal of Financial Risk Management, 6(4), 352-363. https://doi.org/10.4236/jfrm.2017.64025

39. Chowdhury, E. K. (2017). Measuring the Effect of Macroeconomic Variables on the Stock Market Return: Evidence from Chittagong Stock Exchange. AU-International e-Journal of Interdisciplinary Research, 2(2), 1-10. http://www.assumptionjournal.au.edu/index.php/eJIR/article/view/4227

40. Chowdhury, E. K. (2021). Prospects and challenges of using artificial intelligence in the audit process. In Abedin, M.Z., Hassan, M.K., Hajek, P. (eds.) The Essentials of Machine Learning in Finance and Accounting (pp. 139-155). Routledge. https://tinyurl.com/4stz7ycj

41. Chowdhury, E. K. (2022). Disastrous consequence of coronavirus pandemic on the earning capacity of individuals: an emerging economy perspective. SN Bus Econ. 2(153). https://doi.org/10.1007/s43546- 022-00333-z

42. Chowdhury, E. K., & Abedin, M. Z. (2020). COVID-19 effects on the US stock index returns: an event study approach. Available at SSRN 3611683. http://dx.doi.org/10.2139/ssrn.3611683

43. Chowdhury, E. K., & Begum. R. (2012). Reward Management as Motivational Tool in Various Industries in Bangladesh: An empirical study. International Journal of Contemporary Business Studies, 3(11), 22-34. https://tinyurl.com/3vzu9cu8

44. Chowdhury, E. K., & Chowdhury, G. M. (2014). Applicability of Prediction Techniques in the Stock Market-A Chittagong Stock Exchange Perspective. International Journal of Advanced Information Science and Technology, 32(32), 126-136, DOI:10.15693/ijaist/2014.v3i12.124-134

45. Chowdhury, E. K., & Chowdhury, R. (2017). Online Shopping in Bangladesh: A Study on the Motivational Factors for Ecommerce that Influence Shopper’s Affirmative Tendency towards Online Shopping. South Asian Journal of Marketing & Management Research, 7(4). 20-35. DOI:10.5958/2249-877X.2017.00019.4

46. Chowdhury, E. K., & Chowdhury, R. (2022). Empirical research on the relationship between renewable energy consumption, foreign direct investment and economic growth in South Asia. Journal of Energy Markets, 15(2). 1-21, https://DOI:10.21314/JEM.2022.012

47. Chowdhury, E. K., & Chowdhury, R. (2023). Role of financial inclusion in human development: Evidence from Bangladesh, India and Pakistan. Journal of the Knowledge Economy, 1-26. https://doi.org/10.1007/s13132-023-01366-x

48. Chowdhury, E. K., & Nahar, S. (2017). Perceptions of Accountants toward Sustainability Development Practices in Bangladesh. Journal of Management and Sustainability,7(3), 112-119. doi:10.5539/jms.v7n3p112

49. Chowdhury, E. K., & Reza, T. (2013). Diagnostic Study on Interactive Ads and Its Response towards the FM Radio. International Journal of Research in Commerce, IT & Management, 3(2), 36-41. https://tinyurl.com/5n8huanv

50. Chowdhury, E. K., Abdullah, M. N., & Tooheen, R. B. (2021). Role of information and communication technology in economic progress and increasing demand for renewable energy: evidence from China and India. Asian Journal of Technology Innovation, 30(3), 651-671. https://doi.org/10.1080/19761597.2021.1961090

51. Chowdhury, E. K., Dhar, B. K., & Stasi, A. (2022). Volatility of the US stock market and business strategy during COVID-19. Business Strategy & Development, 1–11. https://doi.org/10.1002/bsd2.203

52. Chowdhury, E. K., Dhar, B. K., Gazi, M., & Issa, A. (2022). Impact of Remittance on Economic Progress: Evidence from Low-Income Asian Frontier Countries. Journal of the Knowledge Economy, 1-26. https://doi.org/10.1007/s13132-022-00898-y

53. Chowdhury, E. K., Dhar, B. K., Thanakijsombat, T., & Stasi, A. (2022). Strategies to determine the determinants of financial performance of conventional and Islamic commercial banks: Evidence from Bangladesh. Business Strategy & Development, 1–19. https://doi.org/10.1002/bsd2.207

54. Chowdhury, E.K. (2018). An Assessment of Return Spillover Among Selected Stock Markets in SAARC Countries. South Asian Journal of Management, 25 (1), 51-63. Association of Management Development Institutions in South Asia. https://tinyurl.com/y2bd39tk

55. Chowdhury, E.K. (2018). Does Foreign Direct Investment Stimulate Economic Progress of a Developing Country? Empirical Evidence from Bangladesh. CIU Journal, 1 (1), 71-86. Chittagong Independent University. https://tinyurl.com/3scz3jzh

56. Chowdhury, E.K. (2019). An Empirical Study of Volatility in Chittagong Stock Exchange. CIU Journal, 2 (1), 19-38. Chittagong Independent University. https://tinyurl.com/3w6k89k8

57. Chowdhury, E.K. (2019). Transformation of Business Model through Blockchain Technology. The Cost and Management, 47(5), 4-9. The Institute of Cost and Management Accountants of Bangladesh. https://tinyurl.com/bdz4ns7t

58. Chowdhury, E.K. (2020). Catastrophic Impact of Covid-19 on Tourism Sector in Bangladesh: An Event Study Approach. The Cost and Management, 48(4), 43-52. The Institute of Cost and Management Accountants of Bangladesh. https://tinyurl.com/ccu6mkbx

59. Chowdhury, E.K. (2020). Is Capital Market Integration among the SAARC Countries Feasible? An Empirical Study. Eurasian Journal of Business and Economics, 13(25), 21-36. https://doi.org/10.17015/ejbe.2020.025.02

60. Chowdhury, E.K. (2020). Non-Performing Loans in Bangladesh: Bank Specific and Macroeconomic Effects. Journal of Business Administration, 41(2), 108-125. University of Dhaka. https://tinyurl.com/54f5pexw

61. Chowdhury, E.K. (2020). Volatility in Cryptocurrency Market–Before and During Covid-19 Pandemic. CIU Journal, 3(1), 69-86. Chittagong Independent University. https://tinyurl.com/mr3djzcn

62. Chowdhury, E.K. (2022). Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective, Journal of Capital Markets Studies, 6(3), 225-241. https://doi.org/10.1108/JCMS-05-2022-0015

63. Chowdhury, E.K. (2023). Integration of Artificial Intelligence Technology in Management Accounting Information System: An Empirical Study. In: Abedin, M.Z., Hajek, P. (eds) Novel Financial Applications of Machine Learning and Deep Learning. International Series in Operations Research & Management Science, vol 336. Springer, Cham. https://doi.org/10.1007/978-3-031-18552-6_3

64. Chowdhury, E.K., & Rozario, S. O. (2018). Impact of Attitude and Awareness of Investors on their Investment Behavior- A Study on Bangladesh Stock Market. The Bangladesh Accountant, July- September, 81-89. The Institute of Chartered Accountants of Bangladesh. https://tinyurl.com/4av6swas

65. Chowdhury, EK (2020). India’s NRC, CAA may take Bangladesh closer to China. Asian Regional Review, Diverse Asia, Seoul National University Asia Center, 3(2). https://diverseasia.snu.ac.kr/?p=4525

66. Chowdhury, M.R.A., & Chowdhury, E. K. (2010). Estimation of Stock Market Risk-A Value at Risk Approach. The Cost & Management, 38(4), 22-27. https://tinyurl.com/4ax978ud

67. Chowdhury, M.R.A., Chowdhury, E. K., & Chowdhury, T. U. (2015). Application of Capital Asset Pricing Model: Empirical Evidences from Chittagong Stock Exchange. The Cost & Management, 43(03), 38-44. https://tinyurl.com/bddv24cy

68. Stainback, Kevin et al. “Female Leaders, Organizational Power, and Sex Segregation.” Gender & Society 10 (1996): 408-428.

69. Suraj-Narayan, Gourie. “Women in Management and Occupational Stress.” JSTOR, 2005. Torchia, M., Calabrò, A., & Huse, M. (2011). Women Directors on Corporate Boards: From

70. Tokenism to Critical Mass. Journal of Business Ethics, 102(2), 299-317.

71. Triana, María del Carmen, Toyah L. Miller and Tiffany M. Trzebiatowski. “The Double-Edged Nature of Board Gender Diversity: Diversity, Firm Performance, and the Power of Women Directors as Predictors of Strategic Change.” Organization Science 25, no. 2 (2014): 609-632.

72. Van Gerven, Emma J.G., Annebel H.B. De Hoogh, Deanne N. Den Hartog and Frank D. Belschak. “Gender Differences in the Perceived Behavior of Narcissistic Leaders.” Journal of Business Ethics 149 (2018): 329-345.