A Counter-Stereotype Perspective on Female CEOs and Acquisition Intensity

Previous research suggests that female leaders are less likely to engage in acquisitions than male leaders because of their low agency and high communality. Yet, many female leaders pursue acquisitions more aggressively than male leaders. We draw on gender stereotypes and counter-stereotypical behavior research to address this puzzle. We propose that female CEOs’ strategic decisions are not solely influenced by their personal traits—they also consider how these decisions affect their perceived fit into the top leadership role. Specifically, female CEOs may actively pursue acquisitions to counteract the stereotype that they lack the agentic qualities necessary for effective leaders. This tendency is particularly pronounced in firms or industries where men predominantly occupy upper echelon positions. We find support for these arguments using a sample of privately listed Chinese firms between 2000 and 2019. Our study highlights that female CEOs do not make strategic decisions in a social vacuum.