Executive social connections and gender pay gaps

David Javakhadze and Austin Shelton

Journal of Corporate Finance, 2022, vol. 73, issue C

Abstract: We examine whether managerial social capital, defined as aggregate benefits of social obligations and informal contacts accrued through social connections, influences gender pay gaps. Consistent with homophily, the tendency to bond and interact with others of similar type, we find a positive association between connections of male executives and compensation. However, these social ties do not enhance firm performance more than connections of female executives. We also demonstrate that connections reduce pay-for-performance sensitivity of male executives. Finally, we document a manifestation of homophily in other corporate decisions. Our findings are robust to model specifications and adjustments for potential endogeneity.

Keywords: Compensation; Gender wage gap; Social networks (search for similar items in EconPapers)
JEL-codes: G3 G30 G34 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0929119922000128
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:73:y:2022:i:c:s0929119922000128

DOI: 10.1016/j.jcorpfin.2022.102169

Access Statistics for this article

Journal of Corporate Finance is currently edited by A. Poulsen and J. Netter

More articles in Journal of Corporate Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().