This study analyzes the “glass cliff” phenomenon using performance data from 233 large listed firms in Germany and the United Kingdom collected from 2005 to 2015. We examine these firms' accounting and stock market performance trends prior to the appointments of new board members and the short-term stock market reaction to these appointments. To address endogeneity concerns that may have affected previous glass cliff field research, we apply various matching procedures, perform different panel data analyses and do instrumental variable analyses. We find no support for the idea of the glass cliff: Before the appointment of female executives, the performance trend in German or British companies is no more negative than in companies that select male managers.
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