Even though women-owned firms represent almost half of US new businesses, female founders and CEOs of startups fared poorly in an IPO simulation involving MBA students, says a team led by Lyda Bigelow of the University of Utah.

For example, the amount of money that participants recommended for investment in a fictionalised initial public offering for a cosmetic-surgery company was almost four times higher if the CEO was identified as male; moreover, the anticipated share price of IPOs led by male CEOs was approximately 11pc higher than those of female-led IPOs, suggesting that bias explains why successful female-led IPOs are an ‘extremely rare phenomenon.’

(Source: Journal of Management)

Published in Dawn, Economic & Business, March 2nd , 2015

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