Women at Multiple Levels of Strategic Leadership: Evidence of Gender Spillovers

ABSTRACT Manuscript Type Empirical. Research Question/Issue We examine how the combined presence of women in multiple levels of strategic leadership, including gender‐diverse boards, affects firm accounting performance. Research Findings/Insights Our meta‐analysis of 273 effect sizes across various hypotheses expands research on women in upper echelons by showing that gender‐diverse boards are positively related to gender spillovers, that is, the appointment of female executives. Most importantly, our work demonstrates that gender spillovers mediate the relationship between board gender diversity and firm performance, indicating there are joint effects of women leaders when serving at various levels of the organization simultaneously. We also find that the size of gender‐diverse boards negatively affects gender spillovers to the level of executives. Theoretical/Academic Implications Our research highlights interdependencies between gender diversity at different organizational levels and the distinct contribution of women directors. We draw attention to the role of gender spillovers as a mechanism that helps explain how the appointment of women directors benefits firm performance. Our findings broadly contribute to upper echelons theory. Practitioner/Policy Implications This study emphasizes that increasing the representation of women on boards can advance the cause of women at other levels of strategic leadership. Furthermore, if women are in multiple levels of strategic leadership at the same time, this can lead to improved firm performance.