Publication Date

April 1999


[Excerpt] As part of an overall research project exploring the determinants of initial public offering (IPO) firm success, I examine the effect of having women on the top management teams of IPO firms on the organizations’ short and long-term financial performance. Looking at three different samples, I found that trend data indicate IPO firms are gaining in the number of women they employ in their top management teams (where top management team is defined as those listed in the firm’s prospectus). The results of the study reported in this paper suggest one reason why the trend is growing; women appear to have a positive effect on the firms’ short-term performance (Tobin’s Q, which is market price to book value per share), three-year stock price growth, and growth in earnings per share.


Suggested Citation
Welbourne, T. M. (1999). Wall Street likes its women: An examination of women in the top management teams of initial public offerings (CAHRS Working Paper #99-07). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.