September 20, 2019

Research: When Women Are on Boards, Male CEOs Are Less Overconfident

By Jie Chen, Woon Sau Leung, Wei Song & Marc Goergen

A number of governments (notably those in India, California, and parts of Europe) are pushing for greater female representation in the boardroom. And several studies suggest why: Having women on the board results better acquisition and investmentdecisions and in less aggressive risk-taking, yielding benefits for shareholders. What’s less clear is why these effects happen.

Our research suggests one potential reason: Having female board members helps temper the overconfidence of male CEOs, improving overall decision making for the company.