A study from TUM School of Management examines how women’s ownership shares and decision-making authority are associated with the strategic orientation of small and medium-sized companies. The results reveal differences in revenue growth, liquidity, and the emphasis placed on economic and social objectives.
In a recent study, Miriam Bird, Professor of Entrepreneurship and Family Enterprise, and her co-author Dr. Jannis von Nitzsch, a research associate at Heinrich Heine University Düsseldorf, investigated how the proportion of company shares held by women and the associated decision-making authority affect corporate strategy.
Analysis of Almost 43,000 Companies
Using the international Orbis database, Bird and von Nitzsch first examined revenue growth and liquidity at almost 43,000 small and medium-sized companies in Spain, France, and Italy between 2011 and 2019. In a second step, they analyzed more than 25,000 historical company websites retrieved from a web archive. “We examined the extent to which companies emphasized social or economic objectives in their communications. For example, we identified terms associated with care, social responsibility, or benefits to society.”
The researchers also interviewed selected company owners. “We asked them which objectives they pursued. Women owners were particularly likely to say that they wanted to help customers, share knowledge, care for people, or consciously promote animal welfare – and that they often prioritized these objectives over economically attractive alternatives.”
Higher Liquidity and Lower Growth
Bird summarizes the main findings: “The larger the ownership share held by women, the greater the differences we see in the company’s strategic orientation. On average, these companies experience lower revenue growth but maintain larger liquidity reserves.”
Bird does not regard these findings as inherently positive or negative but as an indication that women often set different strategic priorities than men. “Greater liquidity can provide a company with more security and stability – particularly when revenue declines or unexpected crises such as the COVID-19 pandemic occur. At the same time, a more cautious allocation of resources may mean that some growth opportunities are pursued more slowly.”
Another key finding is that companies with a high proportion of women among their owners focus more strongly on social objectives and less strongly on economic objectives. This relationship is particularly pronounced when women collectively own more than 50 percent of the company. “Ownership is associated with decision-making authority. When women collectively hold more than half of the shares, they normally have a majority in private companies and can implement key strategic decisions,” Bird explains.
Composition of Company Owner Teams
Would an equal proportion of women and men in an owner team therefore be ideal, enabling a company to grow, manage its financial resources prudently, and pursue social and sustainability objectives at the same time? Bird does not draw this conclusion: “That would go beyond our findings. We do not want to suggest that there is an optimal proportion of women or men. However, we show that the composition of owner teams, and particularly the distribution of decision-making authority, can strongly influence a company’s strategic orientation. The ideal composition in any specific case depends on the objectives pursued by the company.”
Bird also remains cautious about applying the findings to other countries: “Our study examines France, Italy, and Spain, where traditional gender roles are more pronounced than they are in Scandinavian countries, for example. We therefore point out that the observed effects may represent an upper limit and could be weaker in more egalitarian societies. I would also be cautious about applying the findings to Germany because different mechanisms may operate in the countries we studied.”
Nevertheless, she sees considerable practical value in the study: “We should look not only at who owns a company but also at how decision-making authority is distributed. It makes a major difference whether women collectively hold 10 or 50 percent of the shares because ownership stakes are linked to strategic priorities. For investors, this can provide an indication of the strategic orientation pursued by a company – in terms of liquidity, growth, or social value creation.”
Bird emphasizes one further point: “The general understanding of success is still heavily focused on growth. This makes it all the more important to show that women owners do not manage companies better or worse, but set different strategic priorities. Particularly in the current debate about the limits to growth, we should remember that entrepreneurs can pursue important objectives beyond increasing revenue – such as making a positive contribution to society.”
The article is available open access: von Nitzsch, J., & Bird, M. (2026). Women own differently: How women's decision-making authority shapes owner teams' strategic choices in private firms. Strategic Entrepreneurship Journal, 1–29. https://doi.org/10.1002/sej.70043
