Impact of Female Chief Executive Officers (CEOS) on the Financial Performance of Nigerian Banks: Exploring the Lehman Sisters Hypothesis (Published)
This study investigates the Lehman Sisters Hypothesis by examining whether female CEOs influence bank performance differently from male CEOs in Nigeria. Adopting an ex post facto research design, the study used purposive sampling to select four commercial banks that experienced both male-led (2017–2020) and female-led (2021–2024) leadership. Secondary financial data was obtained from annual reports of the affected banks and analyzed using descriptive statistics, correlation and panel regression with fixed effects. Performance was assessed through Return on Assets (ROA), Return on Equity (ROE) and Earnings per Share (EPS), with bank size as a control variable. Results show that male-led banks reported slightly higher ROA, reflecting greater asset utilization, while female-led banks achieved stronger ROE and significantly higher EPS, suggesting superior shareholder value creation. Regression analysis confirmed CEO gender as a significant determinant of financial performance, with bank size moderating negatively under male leadership but positively under female leadership. The findings indicate that CEO gender matters for Nigerian banks, with female leadership more strongly associated with shareholder-focused performance, offering partial support for the Lehman Sisters Hypothesis. The study recommends greater support for female CEOs in asset productivity strategies, targeted policies to strengthen shareholder returns and deliberate promotion of gender diversity in executive leadership to sustain earnings growth.
Keywords: CEO gender, EPS, Financial Performance, Lehman sisters’ hypothesis, ROA, ROE