Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062

Conference List

Journal of Social Economics Research

June 2019, Volume 6, 2, pp 169-187

How can Female Executives Shape the Effectiveness of Executive Compensation?- A Multi-Dimensional Approach

Changzheng Zhang


Dan Yang

Changzheng Zhang 1 ,

Dan Yang 1 
  1. School of Economics & Management, Xian University of Technology, China. 1

on Google Scholar
on PubMed

Pages: 169-187

DOI: 10.18488/journal.35.2019.62.169.187

Share :

Article History:

Received: 10 September, 2019
Revised: 14 October, 2019
Accepted: 21 November, 2019
Published: 19 December, 2019


This paper attempts to build and analyze a conceptual model to systematically study the impact mechanism of female executives on the following dimensions of executive compensation including pay-performance sensitivity, executive pay level, executive pay component and pay gap from multiple theoretical perspectives of managerial power, principal-agent and employee discrimination theory, etc. The paper concludes as follows: (1) seven specific impact mechanisms of female executives on executive pay-performance sensitivity have been identified including enhancing monitoring role, lowering insider trading, increasing remuneration disclosure and adopting more balanced setting rules; (2) six specific impact mechanisms of female executives on executive pay level have been clarified such as reducing corporate tax avoidance, mitigating unethical earnings manipulation behavior or accounting fraud behavior and choosing lower level of leverage ratio?(3) it is found that female executives would enhance executive pay components diversity by adding additional pay components to compensation package, mainly including social responsibility-based pay, environmental performance-based pay, innovation performance-based pay and reducing extra unethical pay due to financial statement fraud or earnings manipulation and (4) female executives would enlarge executive-employee compensation pay gap, moderate the gender compensation gap among employees and narrow executive compensation gap due to the female executives’ need for affiliation, etc. Taking 499 Chinese A-share listed companies selected in the corporate social responsibility rating report issued by Rankings CSR Ratings from 2012-2016 as the research sample, we examine the above theoretical propositions by adopting the multiple regression method based on OLS.
Contribution/ Originality
This paper’s primary contribution is finding seven specific impact mechanisms of female executives on executive pay-performance sensitivity, six specific impact mechanisms of female executives on executive pay level and female executives would enhance executive pay components diversity.


Female executives, Executive compensation, Executive pay-performance, Sensitivity, Pay components diversity, Executive pay level, Pay gap.


Ahmed, A.S., C.G. Ntim and B. Al-Najjar, 2019. Board diversity, corporate governance, corporate performance, and executive pay. International Journal of Finance & Economics, 24(2): 761-786.Available at:

Alazzani, A., W.N. Wan-Hussin and M. Jones, 2019. Muslim CEO, women on boards and corporate responsibility reporting: Some evidence from Malaysia. Journal of Islamic Accounting and Business Research, 10(2): 274-296.Available at:

Albuquerque, A.M., G. De Franco and R.S. Verdi, 2013. Peer choice in CEO compensation. Journal of Financial Economics, 108(1): 160-181.Available at:

Alicia, R.I., C. Glass, A. Cook and K.J. Olsen, 2019. Power, status and expectations: How narcissism manifests among women CEOs. Journal of Business Ethics, 158(4): 893-907.Available at:

Alkalbani and Nasser, 2017. The evolution of the board of directors in the UK corporate governance context. Doctoral Dissertation, University of East Anglia.

Almor, T., O. Bazel-Shoham and S.M. Lee, 2019. The dual effect of board gender diversity on R&D investments. Long Range Planning: 101884.Available at:

Amzaleg, Y., O.H. Azar, U. Ben-Zion and A. Rosenfeld, 2014. CEO control, corporate performance and pay-performance sensitivity. Journal of Economic Behavior & Organization, 106: 166-174.Available at:

Cambini, C., S. De Masi, A. Paci and L. Rondi, 2018. CEO compensation in EU telecom companies: Does the state design the right incentives? Telecommunications Policy, 42(6): 474-488.

Carrothers, A., 2019. The impact of public scrutiny on executive compensation. Journal of Financial Regulation and Compliance, 27: 303-323.Available at:

Chen, J., W.S. Leung, W. Song and M. Goergen, 2019. Why female board representation matters: The role of female directors in reducing male CEO overconfidence. Journal of Empirical Finance, 53: 70-90.Available at:

Choi, H. and H.S. Sang, 2019. The effect of financial reporting quality on CEO compensation structure: Evidence from accounting comparability. Journal of Accounting and Public Policy, 38(2): 106681.Available at:

Clarkson, P.M., J. Walker and S. Nicholls, 2011. Disclosure, shareholder oversight and the pay–performance link. Journal of Contemporary Accounting & Economics, 7(2): 47-64.Available at:

Connell, C., 2019. Women CEOs on making strategy happen. Strategic Direction, 35(7): 1-4.Available at:

Cook, A., A.R. Ingersoll and C. Glass, 2019. Gender gaps at the top: Does board composition affect executive compensation? Human Relations, 72(8): 1292-1314.Available at:

Ellwood, S., J. Garcia-Lacalle and S. Royo, 2019. The shattered glass ceiling and a narrowing gender pay gap in NHS foundation trusts: Gender and salaries of chief executives. Public Money & Management, 40(1): 31-41.Available at:

Fan, Y., Y. Jiang, X. Zhang and Y. Zhou, 2019. Women on boards and bank earnings management: From zero to hero. Journal of Banking & Finance, 107: 105607.Available at:

Fengyi, L., L. Sheng-Wei and F. Wen-Chang, 2019. How CEO narcissism affects earnings management behaviors. North American Journal of Economics and Finance: 101080.Available at:

Flabbi, L., M. Macis, A. Moro and F. Schivardi, 2019. Do female executives make a difference? The impact of female leadership on gender gaps and firm performance. The Economic Journal, 129(622): 2390-2423.

Francis, B., I. Hasan and Y. Zhu, 2019. Benchmark on themselves: CEO-directors’ influence on the CEO compensation. Managerial Finance, 45(7): 810-826.Available at:

Frye, M.B. and D.T. Pham, 2018. CEO gender and corporate board structures. The Quarterly Review of Economics and Finance, 69: 110-124.Available at:

Gomez-Mejia, L., J. Baixauli-Soler, M. Belda-Ruiz and G. Sanchez-Marin, 2019. CEO stock options and gender from the behavioral agency model perspective. Management Research, 17(1): 68-88.Available at:

Harakeh, M., W. El-Gammal and G. Matar, 2019. Female directors, earnings management, and CEO incentive compensation: UK evidence. Research in International Business and Finance, 50: 153-170.Available at:

Harper, J., G. Johnson and L. Sun, 2020. Stock price crash risk and CEO power: Firm-level analysis. Research in International Business and Finance, 51: 101094.Available at:

Huang, J. and D.J. Kisgen, 2013. Gender and corporate finance: Are male executives overconfident relative to female executives? Journal of Financial Economics, 108(3): 822-839.Available at:

Huda and Makeen, 2019. The impact of intangible capital and diversity reputation on firm performance. University of New Orleans Theses and Dissertations.

Ikram, A., Z.F. Li and D. Minor, 2019. CSR-contingent executive compensation contracts. Journal of Banking & Finance: 105655.Available at:

Jean, M., O. Jana, W. Michael and H. Roman, 2019. Do contracts make them care? The impact of CEO compensation design on corporate social performance. Journal of Business Ethics, 157(2): 375-390.Available at:

Jie, C., S.L. Woon, S. Wei and G. Marc, 2019. Why female board representation matters: The role of female directors in reducing male CEO overconfidence. Journal of Empirical Finance, 53: 70-90.Available at:

Jihene, F. and D. Moez, 2019. The moderating effect of audit quality on CEO compensation and tax avoidance: Evidence from Tunisian context. International Journal of Economics and Financial Issues, 9(1): 131-139.

Koo, K. and W.Y. Kim, 2019. Do lucky CEOs avoid innovation?  Applied Economics Letters, 26(10): 795-798.Available at:

Kumar, A. and J.-P. Paraskevas, 2018. A proactive environmental strategy: Analyzing the effect of SCM experience, age, and female representation in TMTs. Journal of Supply Chain Management, 54(4): 20-41.Available at:

Laure, T., 2009. Gender diversity and innovative performance. International Journal of Innovation and Sustainable Development, 4(2/3): 123-134.Available at:

Liao, J., D. Smith and X. Liu, 2019. Female CFOs and accounting fraud: Evidence from China. Pacific-Basin Finance Journal, 53: 449-463.Available at:

Liu, C., 2018. Are women greener? Corporate gender diversity and environmental violations. Journal of Corporate Finance, 52: 118-142.Available at:

Marcet, F., 2018. Performance pay and catering incentives. Finance Research Letters, 27: 12-22.Available at:

Maretno, A.H. and R. Fabrizio, 2019. Religiosity, female directors, and corporate social responsibility for Italian listed companies. Journal of Business Research, 95(1): 338-346.Available at:

Mirko, H.B., P.M. Geoffrey and G. Lotte, 2018. CEO equity risk bearing and strategic risk taking: The moderating effect of CEO personality. Strategic Management Journal, 40(2): 153-177.

Mostak, A.M., W. Jie and G. Namita, 2019. Does board composition affect the gender pay gap? Economics Letters, 184: 108624.Available at:

Naomi, K. and O. Kazuhiko, 2013. Employee discrimination against female executives. CIS Discussion Paper Series from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University,Japan. No. 611.

Nikolaos, T., F. John and B. Alex, 2019. Are women doing it for themselves? Gender segregation and the gender wage gap. IZA Discussion Papers from Institute of Labor Economics, London. No.12657.

Papakroni and Erlina, 2019. Occupational fraud: Executive compensation and enforcements against auditors and perpetrators. America: West Virginia University.

Restaino and B. Kate, 2016. The other side of the glass ceiling: For females, climbing the corporate ladder is only half the battle. America: Scripps College.

Shi, W., Y. Zhang and R.E. Hoskisson, 2019. Examination of CEO–CFO social interaction through language style matching: Outcomes for the CFO and the organization. Academy of Management Journal, 62(2): 383-414.Available at:

Truant, E., L. Broccardo and V. Ratten, 2019. Management control systems in family businesses: Do women matter? Evidence from the Italian food sector. International Journal of Entrepreneurship and Small Business, 37(1): 54-70.Available at:

Zalata, A.M., C.G. Ntim, T. Choudhry, A. Hassanein and H. Elzahar, 2019. Female directors and managerial opportunism: Monitoring versus advisory female directors. The Leadership Quarterly, 30(5): 101309.Available at:

Zhang, W., S.F. Cahan and A.C. Allen, 2005. Insider trading and pay-performance sensitivity: An empirical analysis. Journal of Business Finance & Accounting, 32(9-10): 1887-1919.Available at:

Zhang, X., S. Gao and Y. Zeng, 2019. An empirical study of the relationship between accounting conservatism and executive compensation-performance sensitivity. International Journal of Accounting & Information Management, 27(1): 130-150.Available at:


Google Scholor ideas Microsoft Academic Search bing Google Scholor


This research was supported by Projects of the National Natural Science Foundation under the Grant “71872149” and “71872149”.

Competing Interests:

The authors declare that they have no competing interests.


All authors contributed equally to the conception and design of the study.

Related Article

( 1 ) How Telecommunication Development Aids Economic Growth: Evidence from Itu Ict Development Index (IDI) Top Five Countries for African Region
( 2 ) Metered and Unmetered Billing: How Asymmetric are the Phcn Bills?
( 3 ) How the Principles of the Sharing Economy Can Improve Organizational Performance of the US Public School System
( 4 ) How can Female Executives Shape the Effectiveness of Executive Compensation?- A Multi-Dimensional Approach
( 5 ) Entrepreneurship Training for Mitigating Unemployment in Nigeria: How have the Tertiary Institutions Fared?
( 6 ) Under-Utilization of Female Capital: A Quantitative Study in Pakistani Perspective
( 10 ) Relationships Between Leadership Roles and Project Team Effectiveness as Perceived by Project Managers in Malaysia
( 11 ) Relationships among Team Trust, Team Cohesion, Team Satisfaction and Project Team Effectiveness as Perceived by Project Managers in Malaysia
( 12 ) Moderating Effects of Project Management Experience, Project Team Size, Project Duration and Project Value Size on the Relationship between Project Manager’s Leadership Roles and Project Team Effectiveness in Malaysia
( 13 ) Emotional Workgroup Performance and Group Effectiveness Egyptian Context
( 14 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 15 ) An Evaluation of Effectiveness of Oversight Committees: A Case of City of Johannesburg, Section 79 Committees
( 17 ) The Effectiveness of the Production of Healthy Rice in Comparison with other Rice Varieties in the Upper Northern Region of Thailand
( 18 ) Evaluating the Effectiveness of CAPM and APT for Risk Measuring and Assets Pricing
( 19 ) Appointment of Directors and Performance of Deposit Money Banks in Sub Saharan Africa: Do We Need More Executive or Non-Executive Directors?
( 23 ) Contemporary Approach to Enhanced Road Transport System in Nigeria Through the Application of It-Based (Online) Bus Ticketing and Payment System
( 24 ) Strategic Evaluation of Distributed Power Generation Technology: A Sustainable Approach
( 25 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 26 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 27 ) Relationships between Financial Development and Economic Growth: A New Approach by Inputs
( 28 ) Structural Breaks and the Long-Run Stability of Demand for Real Broad Money Function in Nigeria: A Gregory-Hansen Approach
( 29 ) Determinants of Tax Revenue in Ethiopia (Johansen Co-Integration Approach)
( 30 ) Confirming the Mediation Effect of A Structural Model By Using Bootstrap Approach: A Case Study of Malaysian 8th Grade Students’ Mathematics Achievement
( 31 ) Determinants of Import Demand Functions of Pakistan: An ARDL Bound Testing Approach
( 32 ) A Factor Analysis Approach Towards a Study of the Factors Affecting Students’ Choice of Higher Education Institution: A Case Study of a Private Institution (Twintech International University College of Technology)
( 33 ) Analyzing Factors Affecting the Success of Social Media Posts for B2b Networks: A Fractional-Factorial Design Approach
( 34 ) Foreign Capital Inflows and Unemployment in Nigeria: A New Evidence from ARDL-Bounds Testing Approach
( 35 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 36 ) Leading Indicators and Financial Crisis: A Multi-Sectoral Approach Using Signal Extraction
( 37 ) Health Care Outcomes, Malnutrition and Food Security in Southern Africa Development Community: A Quantile Regression Approach
( 38 ) The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach