22 Jul 2025
Recently, a research paper titled “A counter-stereotype perspective on female CEOs and acquisition intensity” by Dr Shili Chen from the Department of Strategic Management and Organization at the International Business School Suzhou (IBSS) of Xi’an Jiaotong-Liverpool University (XJTLU) has been accepted for publication in the Journal of Business Research. This study investigates when and why female CEOs might pursue acquisitions more aggressively than male CEOs.
Prior research suggests that female CEOs tend to take fewer strategic risks and engage in fewer acquisitions than male CEOs because they are less overconfident, more cautious, and more deliberative in information process. However, real-world examples tell a different story. Consider former Yahoo CEO Marissa Mayer, who executed 53 acquisitions between 2012 and 2015, or Carly Fiorina of Hewlett-Packard, who led the landmark mega-merger with Compaq in 2001. These high-profile cases challenge the prevailing assumption that female leaders are less risk taking than male leaders.
Different from the view that female executives approach risk differently than women in the general population, Dr Chen and her co-authors offer a fresh perspective by arguing that strong gender stereotypes in female CEOs’ work environments pressure them to proactively engage in risky strategies such as acquisitions. Female CEOs face significant challenges to lead effectively because they are frequently stereotyped as lacking the agentic qualities necessary for successful leaders. Therefore, although female CEOs tend to be conservative when evaluating acquisition opportunities, they are highly motivated to engage in acquisitions—a bold, male-type strategy—to display agentic qualities, thereby gaining recognition and support from their peers and subordinates. This counter-stereotypical behavior is particularly pronounced in environments with stronger gender stereotypes, where female CEOs are more likely to be perceived as undeserving of their positions.
For industry professionals, these findings carry significant implications. First, this study underscores that female CEOs’ strategic decision making is not solely influenced by their personal traits but also by the social context in which they operate. Boards should take this into consideration when hiring and monitoring female CEOs, especially in male-dominated sectors where gender stereotypes are particularly strong.
Second, corporate governance professionals can benefit by rethinking how TMT and board composition affects female CEOs’ decision making. By creating more gender-balanced boards and TMTs, companies could reduce the gender stereotypes that compel female CEOs to engage in counter-stereotypical behaviors. This, in turn, may help companies make sounder decisions, ultimately contributing to sustained corporate performance.
Dr Shili Chen is an assistant professor at XJTLU. Her research focuses on gender, corporate governance, and corporate social responsibility. She has published in Journal of Business Ethics and Journal of Business Research.
The Journal of Business Research aims to publish research that is rigorous, relevant, and potentially impactful. It examines a wide variety of business decision contexts, processes, and activities, developing insights that are meaningful for theory, practice, and/or society at large. It is an ABS-3, ABDC-A, CAS-Q1 journal with an impact factor of 10.5.
22 Jul 2025