This paper explores how female CEOs can overcome gender bias, which stems from the stereotypical mismatch between traditional female roles and CEO expectations, by deviating from these norms. Applying expectancy-violation theory, we propose that female CEOs can mitigate this bias through riskier strategic positioning, reflected in strategic distinctiveness and strategic variation. Using a panel dataset of US firms spanning 2004 to 2020 and employing topic modeling, we uncover evidence supporting our propositions. Our findings reveal that female CEOs can even turn gender bias into a strategic asset, achieving enhanced stock market valuation with highly distinctive and highly varied strategies. This study contributes to our understanding of gender bias towards female CEOs and provides practical implications for strategic positioning in biased contexts.
