Language

Multilingual content from IBKR

Close Navigation
Learn more about IBKR accounts
Female Representation in the Academic Finance Profession

Female Representation in the Academic Finance Profession

Posted February 1, 2022 at 9:17 am
Elisabetta Basilico, Ph.D., CFA
Alpha Architect

The post “Female Representation in the Academic Finance Profession” first appeared on Alpha Architect Blog.

  • Sherman and Tokes
  • Journal of Finance, forthcoming
  • A version of this paper can be found here
  • Want to read our summaries of academic finance papers? Check out our Academic Research Insight category

What are the Research Questions?

To date, there is no large-sample empirical evidence on gender balance and career outcomes in academic finance. Though we have taken deep dives into and observed “Where are the Women in Finance” and “Women in the C-Suite.” This paper specifically looks to proved insight into the statistics of female representation in the academic arena of finance.

What are the Academic Insights?

By studying the top 100 US Business Schools from 2009 to 2017, the authors find:

  1. Only 16% of faculty are women.
  2. After controlling for research productivity, women hold positions at lower-ranked institutions.
  3. Women are less likely to have tenure than men, and they are less likely to be full professors.
  4. There is also some evidence that women are paid less than men during the sample period.
  5. Using citations as a proxy for quality, we find evidence that the quality of papers written by women is higher than it is for men.
  6. On average, women tend to have fewer coauthors than their male colleagues.
  7. But, women in finance tend to have more “female” coauthors than their male colleagues.

There are some positive signs emerging from the research:

  1. Towards the end of the sample period, the authors find that research productivity (and not gender) explains most of the variation in where a faculty member is employed, whether the faculty member has tenure, or exits the profession.
  2. While of the faculty who have tenure during the entire 2009–2017 sample period 9.7% are women, of the faculty obtaining tenure during the sample period, 24.3% are women. And 20.4 % of rookie new hires are women.

Why does it matter?

While this paper does not take a stand on the question of what drives gender disparities, it presents basic facts that might motivate additional work to uncover the mechanisms that drive the differences that we observe in the data.

The low representation of women in finance that the authors document could have implications beyond the careers of the faculty members that we study. For example, female faculty serves as role models that impact the career choices of female MBA students (see Meer, 2020 and Carrell et al., 2010). And here is a piece on the potential positive benefits from the positive influence of women.

The Most Important Chart from the Paper:

The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained. Indexes are unmanaged, do not reflect management or trading fees, and one cannot invest directly in an index.

Abstract

We present new data on female representation in the academic finance profession. In our sample of finance faculty at top-100 U.S. business schools during 2009–2017, only 16.0% are women. The gender imbalance manifests itself in several ways. First, after controlling for research productivity, women hold positions at lower-ranked institutions and are less likely to be full professors. There is also evidence that they are paid less. Second, women publish fewer papers. This gender gap exists in research quantity, not quality. Third, women have more female coauthors, suggesting smaller publication networks. Time-series data suggest shrinking gender gaps in recent years.

Disclosure: Alpha Architect

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Alpha Architect, its affiliates or its employees. Our full disclosures are available here. Definitions of common statistics used in our analysis are available here (towards the bottom).

This site provides NO information on our value ETFs or our momentum ETFs. Please refer to this site.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Alpha Architect and is being posted with its permission. The views expressed in this material are solely those of the author and/or Alpha Architect and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.