Accounting Seminar: Associate Professor Flora Kuang
Patience in the boardroom: Female board representation and CEO performance-induced turnover
Research shows that the performance effect of female board representation, if any, is weak. One explanation is that, with gender equality in their constitutions, Anglo-Saxon countries tend to have high levels of gender parity in their values, experience, and knowledge. This paper focuses on Russia, a patriarchal country with vast social gender differences, where patience and supportiveness are considered fundamental female qualities. We study the impact of women in the boardroom upon the dismissal of a chief executive officer (CEO), a decision with which boards are primarily charged. We show that female representation on boards is associated with lower CEO turnover–performance sensitivity and that the gender effect appears more pronounced on boards where female directors are less likely to represent tokenism. Further, our results suggest that female directors’ patience with CEO dismissal decisions pays off, since such decisions are associated with improved future firm value. We also shed light on plausible channels through which female directors add value. We find that gender-diverse boards tend to be more active (i.e., hold more board meetings) after CEO retention decisions.
Yu (Flora) Kuang is an Associate Professor of Accounting at The University of Melbourne. She earned her PhD in Accounting from Tilburg University in 2007. She received her Research Master's degree in Accounting from the Center Graduate School, Tilburg University and a Bachelor's degree from Renmin University of China. In September 2007, she joined VU University Amsterdam, where she was an Assistant Professor of Accounting (tenure-track) and became tenured in January 2014. In 2009, she visited Ross School of Business as a visiting Assistant Professor in Accounting. Before joining academe she worked as Chief Accountant in the Planning and Budgeting Head Quarter of State Post Bureau of P. R. China.
Flora serves on the leadership and staff team of Melbourne Centre for Corporate Governance and Regulation. She is a member of the Center of Asian Business and Economics (CABE).
Flora has been serving as appointed contributor to Management, Control, and Accounting since 2008. She is an ad-hoc reviewer for The Accounting Review, Contemporary Accounting Research, Journal of Corporate Finance, The European Accounting Review, Journal of Business, Finance, and Accounting, Management Accounting Research, Journal of Accounting, Auditing, and Finance, The British Accounting Review, Accounting and Finance, International Journal of Accounting Information Systems, International Review of Economics and Finance, etc. She is an Associate Editor at the Quarterly Journal of Finance and Accounting (2017-). In 2015, she received the Dean’s Certificate for Research Excellence at the University of Melbourne.