Overview of the Glass Cliff Situation in Indian Context

Abstract

There have been a significant number of research studies that demonstrate that there are a great deal of obstacles or challenges that women managers must overcome in order to achieve top level positions in firms. According to the findings of the study, more women than men are assigned to high-profile leadership roles and then find themselves on a "glass cliff." As a result, their nominations are both risky for the organisation and beneficial to its overall success. The research evaluated the percentage change in monthly stock market performance of BSE 100 businesses both before and after the appointment of a man or woman to serve on the board of directors. The aforementioned study involved searching the annual reports of the BSE 100 companies for data, and the performance of the share prices of the BSE 100 companies was analysed both before and after the appointment of a male or female member of the board of directors at each company. In this manner, two distinct hypotheses have been tested and found to be true: the first is the hypothesis put forth by Judge (2003), which states that women leaders produce relatively poor financial results for their respective organisations; the second hypothesis states that women are appointed in circumstances that involve high risk and relatively poor financial performance.