Sector, size, stability, and scandal: Explaining the presence of female executives in Fortune 500 firms

Although women remain substantially underrepresented in the top echelons of large corporations, a non‐trivial presence of female executives has emerged in recent years. The purpose of this paper is to focus on the firm characteristics that predict the sex of the executive office holder, classifying the plausible firm characteristics that could explain the presence of female executives into four explanations: sector, size, stability, and scandal.

This paper provides perhaps the first large‐sample analyses of the sex of executive officers in Fortune 500 firms by analyzing a sample of 3,691 executives in 444 Fortune 500 companies.

In the paper's sample, 252 of the executives, or 6.4 percent of the sample, are women. The authors' analyses reveal that women are less likely to be chief executive officers and chief operations officers, but more likely to be chief corporate officers and general counsels. Female executives are somewhat less likely to be present in the construction sector, but there is evidence that they are more likely to be present in retail trade. Firms with greater assets and sales growth are less likely to have female executives. Using originally collected data, it is shown that firms that have experienced a scandal in recent years are more likely to have female executives. However, the nature and quantity of scandals do not have significant effects.

Ultimately, the authors' analyses reveal that key firm characteristics predict whether an executive office is held by a woman.