Advisor Endorsements and Gender Bias in Private Equity Evaluations: A Gender Equity Intervention

• In Event: Organizations, Occupations, and Work Section Roundtables
  In Refereed Roundtable (90 minute): Table 8: Supervisor-Subordinate Communication

Abstract

The gender gap in private equity funding persists, driven by gendered status beliefs that bias competence evaluations of female founders. This paper examines advisor endorsement as a targeted gender equity intervention that mitigates these biases at the critical screening stage of the private equity evaluation process. We propose that third-party endorsement enhances the credibility of competence claims for female founders, reducing the impact of gendered stereotypes without requiring changes in their self-presentation or pitch. Using a two-study design, Study 1 draws on field data from ongoing private equity deal evaluations, demonstrating that advisor endorsements narrow the gender gap in investment advancement and capital allocation decisions. Study 2 uses a vignette experiment to identify competence restoration (rather than warmth) as the mechanism through which endorsements reduce gender disparities in investment evaluations. This paper contributes to the sociology of gender inequality in entrepreneurship by highlighting advisor endorsement as a viable intervention to promote gender equity in gatekeeping processes within capital markets.

Authors

• Ozan Kirtac, London School of Economics and Political Science

• Connson Locke, London School of Economics