Our study examines whether gender-diverse engagement partners constrain unethical earnings management behavior in a French mandatory joint audit setting. The investigation of the joint audit setting, by raising concerns about audit team organization and management, provides new insights into how gender-diverse audit partners contribute to the effectiveness of audit decision-making, resulting in reduced earnings management. The need for effective collaboration and communication between joint auditors may foster a transformational leadership style on the part of audit engagement partners. In this regard, (...) we argue that better interaction between male and female lead audit partners confers a comparative advantage on gender-diverse audit partners compared to all-male audit partners. In line with our expectation, our empirical results show that gender-diverse audit partners are negatively associated with discretionary accruals of client firms. Gender-diverse audit partners are also found to constrain earnings management irrespective of whether clients hire one or two brand-name audit firms. Finally, we find that the pervasiveness of earnings management declines when client firms switch from all-male audit partners to gender-diverse audit partners. Our findings underline the importance of considering audit partner gender by policy makers in contexts where joint audits are required or in countries that are considering introducing joint audits. (shrink)

We evaluate the relationship between the appointment of women to CEO or Chair positions and firm performance, and shed light on the differences between family and nonfamily firms. By using a propensity score matching approach on a sample of 394 French firms over the period 2001–2010, we find major discordances between women’s leadership style and family business expectations relative to firm performance, as measured by return on assets and Tobin’s q. Notably, our results support the conjecture that family firms, which (...) are more conducive to transformational leadership, offer women a more appropriate climate for exercising the function of Chair than that of CEO. In contrast, women CEOs perform better in nonfamily firms. Our findings move away from the predominant focus on barriers and stereotypes images about the female leadership and support the contingency theory of leadership, which states that the effectiveness of a leadership style depends on the organization and culture in which leaders operate, and on task-related positions. (shrink)

Role congruity theory affirms that female managers face more difficulties at work because of the incongruity between female gender and leadership role expectations. Furthermore, due to this incongruity, it is harder for female managers to perceive themselves as authentic leaders. However, followers’ attributions of prototypicality could attenuate this role incongruity and have implications on a managers’ organizational identification. Hence, we expect male managers to be more authentic and to identify more with their organizations, when compared to female managers who are (...) low in prototypicality. We hypothesized that authentic leadership dimensions mediate the relation between managers’ biological gender and their OID. However, this indirect effect is conditional of these managers' team prototypicality. For testing these hypotheses, we conducted an online experiment with 149 participants from different work sectors using a 2 × 2 between-subject design. As predicted, men scored higher on authentic leadership, and three dimensions partially mediated the effect of participants’ biological gender on OID. In the low team prototypicality condition female managers scored lower in authentic leadership and identified less with the organization, whereas in the high team prototypicality condition, no gender differences were found. (shrink)

In the present study, we complement role congruity theory with insights from the Social Identity Model of Leadership. We propose that especially female leaders benefit from team prototypicality, i.e., being representative of the group they are leading. We assume that team prototypicality shifts the comparative frame away from higher-order categories like gender and leader roles to more concrete team-related properties and thereby reduces disadvantages for female leader that stem from the incongruity between the leader role and the female gender role (...) stereotypes. Further, this effect should affect both leaders themselves and their perception by their followers. Building on previous research, we predict, first, lower authentic leadership behavior for female than male leaders. Second, that team prototypicality positively relates to authentic leadership and trust in leader. Third, that team prototypicality has stronger relations to authentic leadership and trust in leader for female compared to male leaders. We tested assumptions in a randomized online experiment and a cross-sectional survey study. We did not find consistent support for the assumed gender differences in authentic leadership. But our results show that team prototypicality—both self-perceived and as perceived by employees —is related to more authentic leadership and more trust in leader and that these relations are stronger for female than for male leaders. Furthermore, we tested in Study 2 an extended model including follower’s job satisfaction as the final follower outcome affected via team prototypicality, leader gender, authentic leadership, and trust in leader. Thereby, we found that team prototypicality has direct and indirect effects on job satisfaction as carried through authentic leadership and trust in leader, respectively. Together, the results of both studies support our assumptions and show that female leaders can reduce role incongruity barriers through high team prototypicality. Implications for future research and practical implications of these results for gender equality are discussed. (shrink)

Female leaders continue to face bias in the workplace compared to male leaders. When employees are evaluated differently because of who they are rather than how they perform, an ethical dilemma arises for leaders and organizations. Thus, bridging role congruity and social identity leadership theories, we propose that gender biases in leadership evaluations can be overcome by manipulating diversity at the team level. Across two multiple-source, multiple-wave, and randomized field experiments, we test whether team gender composition restores gender equity in (...) leadership evaluations. In Study 1, we find that male leaders are rated as more prototypical in male-dominated groups, an advantage that is eliminated in gender-balanced groups. In Study 2, we replicate and extend this finding by showing that leader gender and team gender composition interact to predict trust in the leader via perceptions of leader prototypicality. The results show causal support for the social identity model of organizational leadership and a boundary condition of role congruity theory. Beyond moral arguments of fairness, our findings also show how, in the case of gender, team diversity can create a more level playing field for leaders. Finally, we outline the implications of our results for leaders, organizations, business ethics, and society. (shrink)

As stated by previous researchers, in an increasingly competitive environment, organizations need to develop successful innovations to compete and survive in the long term. Furthermore, sustainability and social issues are gaining increasing importance, to the extent that they are now a matter of high concern for firms and for society. Therefore, organizations cannot improve their results at any price and must be responsible for the consequences of their activities, including innovation. In these conditions, a growing demand for new leadership styles (...) and behaviors arises to face this complex context. Stewardship is a leadership behavior that shows great concern for the impact of the organization’s activity on society. A quantitative study has been conducted with the purpose of providing empirical evidence of the relationship between leaders’ stewardship behavior and innovation success, using radical innovation as an explanatory variable. To confirm the hypotheses, structural equations were used on a dataset from a sample of 300 questionnaires from Spanish companies. The study empirically validates the proposed conceptual model. Results show how radical innovation fully mediates the relationship between leaders’ stewardship behavior and innovation success. (shrink)