ABSTRACT
High-visibility labor markets predict larger career penalties for women after negative performance shocks. We test this among bank directors using the 2007-2009 financial crisis and post-crisis failures from 2012-2019, comparing female and male co-directors of the same distressed bank. Difference-in-differences and triple-difference estimates find no gender-asymmetric decline in appointments, appointment quality, committee assignments, or exits; Bayes factors and equivalence tests confirm the null. Failed banks recruit their first female director 1.5 years faster than non-failed peers. One exception is that female directors from poorly performing banks are less likely to gain seats on boards with multiple incumbent women.
Carter, David A and Shank, Corey and Wynter, Matthew, Do Female Directors Face Larger Career Consequences After Financial Distress? (June 30, 2026).
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