"To Buy, or Not to Buy? the Influence of CEO Gender on Acquisition Investment Behavior"

Some research suggests that women must act like men once in the upper echelon. At the same time, other work has shown that female and male executives often behave very differently. In this study, we attempt to reconcile these competing perspectives by examining the influence of gender on CEO acquisition activity. Drawing on role congruity and lack of fit theories, we theorize that female CEOs perceive greater downside personal and employment risk from assuming CEO roles than their male peers. Thus, given the performance uncertainties that acquisitions present, we propose that, in general, female CEOs are less likely to acquire other firms than their male counterparts. Nevertheless, all CEOs face certain contextual pressures for growth. Thus, we argue that female CEOs’ acquisition behavior is context dependent, such that increased pressures will lead them to acquire at levels similar to male CEOs, while decreased pressures will exacerbate their natural inclinations to avoid acquisition activity. Our results support our predictions and underscore the need for strategic management scholars to begin to better account for gender differences in the upper echelon.